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How Long Would it Take to Repay $30,000 Student Loan?

federal vs private student loansIf Taking Loan(15Lacs) -> Going for MS -> Completing it -> Job? Not sure? But if, Then 50-60k $ -> Working for 1-2-Xyrs -> Repay loan + Profit, is everyones strategy, how far it stays full proof? Considering the candidate is street smart and gets things done ethically.

Above question was posted by Swapnil at Study in USA or Job in India?

Education Loan Repayment

  • Education Loan – 15 Lakhs (~ $30,000) + Interest 13%
  • Salary – $60,000

Question – How Long does it take to replay the education loan?

It going to take more than 2 years.

Car Loan and Student Loan

With $60,000 in Salary, you have to pay Federal and State Tax (not in Florida, Texas, Alaska, Washington).

Then you have typical cost of living, which will be higher than students lifestyle.

Some of you might decide to buy a new car. I’m going to assume $20,000 for a new car.

  • Monthly Car Payment – $400
  • Apartment Rent – $400 to $1000
  • Other Expenses – $500 to $1000
  • Lowest Total = $1300

Take Home Pay

Lets see what will be your approximate take home pay for $60,000 salary (Sample Salary Statement).


  • 401(k) – $125 per pay check
  • ESPP – $125 per pay check
  • Health insurance – $50 per pay check

Take Home Salary

  • California – $1600
  • Florida, Texas –  $1750
  • New york – $1700

Most likely it will be ower than the above quoted amount when you add Dental Plan, Vision Plan, Life insurance, etc.

Lets to the Math

  • Lowest Living Expense – $1300
  • Take Home Pay – $1750

With 2 Pay Check per month, you are left with $1750 + ($1750 – $1300) = $2200

Education Loan Repayment

You need to save for Emergency. You cannot pay $2200 every month and left with no cash for additional expenses (Trips, Travel,  Electronics, etc).

You need to have atleast 6 months of cash as savings.

For 5 Year loan with 13% interest rate, you  will pay $10,000 in interest.

It would take 40 months to pay off the full student loan.

  • 40 Months = 3 Year and few months.

I have made several assumptions in the above calculations.

If you are financially savvy, you can make a clear education loan payment schedule, stick to the plan to payoff the loan is less time.


Do you have any questions about student loan repayment calculation?

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  2. Hi friends, i’m planning to do MS in US, i’l be joining for fall 2013, i’ve not given my GRE and TOEFL yet, could anyone please guide me as to how to pay back the loan amount after completing MS, after 2 years of study, we’l get only 1year extension to work, how to extend the work period to more than 1 year, if i get scholarship, how much scholarship can i expect?? pl help

  3. Hi friends, i’m planning to do MS in US, i’l be joining for fall 2012, i’ve not given my GRE and TOEFL yet, could anyone please guide me as to how to pay back the loan amount after completing MS, after 2 years of study, we’l get only 1year extension to work, how to extend the work period to more than 1 year, if i get scholarship, how much scholarship can i expect?? pl help

  4. I am planningf to repay my educational loan from this month. do we get any tax breaks for repaying edu loans in the US, especially loans taken in india .

  5. Hi friends,
    I did my mechanical engineering and currently working in a Sugar and Power producing company as a project engineer. I have 3 years of experience in project management and want to do MBA in one of the good university in USA.
    As I am appearing for GRE and Toefl, I want to know whether I can apply with GRE score to MBA?
    Also can I apply in Spring… Means are their ay colleges which start in spring for MBA?

  6. Dear Friends,

    I am a mechanical engineer. I have 10 years of work exp in Engg & Manufacturing Sectors. I am 30 years old now & married. I have 1 year old baby. I work as a Senior Project Engineer. I am into Construction industry specialized in Project Management.

    I am aspiring to do my MS in US. I have just started preparing for GRE exams for my first attempt. I feel sometimes that am too late for this attempt. Will MS in US would provide me exponential career growth? Could anyone share your views ?

    Sujai Jayakumar

    1. Hi Sujai,
      I am having Electronics and Communication Engineer with 3 years of experience in Embedded. Even I am preparing and will soon take GRE.
      Some of my friends have been abroad to higher studies recently and they say they have people over 40 years old in their courses. Your experience will definitely add to your Master’s. Especially for placements I feel.
      It is really great to see that after 10 years of experience, being married and having a kid you are still aspiring for MS. Its really a source of encouragement for many of us. It shows that studies are very important and age doesn’t stop us from anything.

    2. leave it man!!!! not a good thought. you will spend lot of money and after MS you will again struggle to find job. family people should avoid student visa route.

  7. i knw everyone can really read this,but i will be hapy if some take some of their precious tym to reply to this comment…
    my name is ganesh i hav a sister who is currently a software engineer n she n i hav a high hope to do MS( but me i opt for PhD)….but problem is our father is a professor n engineering college…..
    nw u knw our social status i need few clarifications on some questions….
    1>does studying abroad is too costly for avg.indian?
    2>is there is a bank which will give lesser %of intrest on loan?
    3>wat r the necessary requirement needed for to apply for the loan??
    4>will the visa be denied if there is too much loan amt on the person who is seeking visa?
    5>after completing MS with job hw much shud i save to clear his loan amont within the duration?
    if anyone be kind enough to reply this hope that will be helpfull….
    n tanx for ur tym who read this shame on ya for not leaving a comment??

    1. HI Ganesh… I am gonna try to answer u r questions as per my knowledge…(I am an average Indian aspiring to study in US)
      1>does studying abroad is too costly for avg.indian?
      Well,It depends upon particular type of university,GRE scores and academic background… You can get funding(like R.A.,T.A,G.A.). if u have an awesome profile…
      2.As far I know almost all banks offer same rate of interest..Most of my friends prefer S.B.I. for Edu.Loans
      3.You have to mortgage you property for edu.loan(if above 5 lakhs)

      4,5…Dont know
      Also if you search deeper into this blog you can find all answers you will ever need…

      Hope I am Helpful

  8. @Vignesh:Don’t make such comment.
    It is much needed information to us.
    Any seniears who completed there MS by taking lone and paid back,plz share your experience.

    1. What made you give such a statement. There are many students like me, who are taking it pretty seriously. So, think before you write any crap.

      1. Don’t pay any attention to his comments. He has written several such comments (useless post or not informative post). Thats what you can expect from a High School Kid.

  9. HSB,

    I am planning to apply to a University in the US. The financial affidavit requirement is less(about 14,000) as compared to some of the other schools. I can show this much from my own savings. I am just wondering will the consulate be satisfied with this or will they have their own criteria in terms of funds required that they will want to see from me?
    Secondly, to be on the safer side lets say I opt to borrow 5 lacs so that I can show more funds, should I get the loan first and then go to consulate with my bank statement or do I take the interview first at the US consulate and if they say that we feel you don;t have sufficient funds, I can show a letter which states that I can borrow up to 5 lacs. Please help

  10. Dude dint get the part where u broke down 60000 dollars down to nearly 2k per month…kindly pour some light on dt…

    1. 60k per year.
      Bi-weekly paycheck = 24 paycheck.
      Federal and state taxes and other deductions like insurance, FICA taxes wil be deducted. Then your 401k and employee stock contributions.

      401k and stock will be your savings.

      After that you get around 2k.

  11. Regarding the student loan repayment, Considering the worst option, If one does not get a job in the US and had to return back to India, then what would the calculation look like ?? When could such a candidate break-even ??

    1. bankruptcy filing. kidding. depends on what job you get in india and how much it pays. cannot be computed here. you have to find it out yourself 🙂

  12. 50-60K is a very low assumption..I don think there are many graduate students who get 50-60K after after graduation specially in CA..A fair assumption would be 70-80K..

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