Student Loan vs Scholarship Calculator
Compare borrowing against winning a scholarship by showing the loan needed and the total interest repaid.
What does the undefined do?
It shows how much you would need to borrow after a scholarship and what that loan costs in monthly payments and total interest.
- Inputs: tuition per year, the number of years, the scholarship per year, the loan rate and the repayment term.
- Output: the loan principal needed, the monthly payment and the total interest repaid.
- Method: uncovered tuition times years, repaid with a standard amortising loan payment.
Quick answer
Tuition of 20,000 a year with a 5,000 scholarship leaves 15,000 a year, or 60,000 over four years. At six percent over ten years that costs about 666 a month and 19,936 of interest.
What This Calculator Really Does
A scholarship is worth more than its face value, because the money it saves is money you never have to borrow or repay with interest. This tool makes that vivid. It first finds the uncovered tuition, tuition per year minus the scholarship, and multiplies by the years to get the loan principal. Then it applies a standard amortising loan at the given rate and term to show the monthly payment and the total interest. The contrast is usually striking: a scholarship that looks modest per year can remove tens of thousands of dollars of principal and interest over a four-year course. The model assumes the loan is drawn in one lump, whereas real student loans are usually drawn in yearly tranches, which affects the interest slightly. It also ignores subsidies, income-driven repayment and forgiveness, which can reduce the real cost. Use it to see the scale of the decision, then check the specific terms.
The formula it uses
Loan principal = max(0, tuition per year minus scholarship per year) x years. Monthly payment uses the amortising formula with the monthly rate and number of months, and total interest is payment x months minus principal.
Worked example with real numbers
Tuition of 20,000 with a 5,000 scholarship leaves 15,000 per year, so a four-year course needs a 60,000 loan. At six percent over ten years the payment is about 666 a month, with total interest of about 19,936.
Common mistakes to avoid
- Comparing the scholarship with the tuition only, when the interest saving is the bigger prize.
- Ignoring that real loans are drawn yearly, which changes the interest.
- Assuming income-driven repayment or forgiveness will erase the debt when eligibility is narrow.
Assumptions and limitations
The loan is drawn as a single lump sum and repaid on a standard schedule at a fixed rate. Subsidies, grace periods, income-driven repayment, forgiveness and fee changes are not modelled.
Disclaimer
This is an educational estimate, not financial aid advice. Loan terms, rates and repayment options vary by country and lender, so confirm the details before borrowing.
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Frequently Asked Questions
How is the undefined calculated?
Uncovered tuition per year is multiplied by the years to get the principal, then the amortising payment formula gives the monthly payment and total interest. The steps panel shows each stage.
What do I need to use the undefined?
Tuition per year, the number of years, the scholarship per year, the loan interest rate and the repayment term.
What does the result from the undefined show?
The loan principal needed, the monthly payment and the total interest repaid over the term.
How much does a scholarship really save?
It saves the tuition it covers plus every cent of interest you would have paid on that amount. On this example a 5,000 scholarship removes about 24,000 of cost across four years.
Should I borrow less by working more?
Working reduces the principal and therefore the interest, but it can affect grades and take longer. Model the trade-off against the scholarship and work-study on the gap calculator.
Is the undefined really free?
Yes — 100 percent free, no sign-up, and everything runs in your browser.
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