Student Loan Repayment Calculator (US)
Compare all federal student loan repayment plans including SAVE, PAYE, IBR, ICR, Standard, Graduated, and Extended. Find the best repayment strategy based on your income, family size, and loan balance.
Federal Student Loan Update
The SAVE plan offers the lowest payments for most borrowers. This calculator compares all available federal repayment plans to help you find the best option for your situation.
Monthly Payment Comparison
Total Cost Comparison
| Plan | Initial Payment | % of Income | Term | Total Paid | Interest Paid | Forgiveness |
|---|
Complete Guide to US Federal Student Loan Repayment Plans
Table of Contents
- Overview of Repayment Options
- Standard Repayment Plan
- Graduated Repayment Plan
- Extended Repayment Plan
- SAVE Plan (Saving on a Valuable Education)
- PAYE (Pay As You Earn)
- IBR (Income-Based Repayment)
- ICR (Income-Contingent Repayment)
- Choosing the Right Plan
- Loan Forgiveness Under IDR Plans
- Frequently Asked Questions
Overview of Repayment Options
Federal student loan borrowers have access to multiple repayment plans, each designed to accommodate different financial situations. Understanding these options is crucial for managing your student debt effectively and potentially qualifying for loan forgiveness.
Repayment plans fall into two main categories:
- Fixed Payment Plans: Standard, Graduated, and Extended - payments are based on your loan balance, not income
- Income-Driven Repayment (IDR) Plans: SAVE, PAYE, IBR, and ICR - payments are calculated based on your discretionary income
Standard Repayment Plan
The Standard Repayment Plan is the default for most federal student loans. It offers:
- Fixed monthly payments over 10 years (120 payments)
- Typically the lowest total interest cost
- Higher monthly payments compared to other plans
- No forgiveness at the end of the repayment period
This plan is ideal if you can afford the payments and want to pay off your loans quickly with the least interest.
Graduated Repayment Plan
The Graduated Repayment Plan starts with lower payments that increase every two years:
- 10-year repayment period (same as Standard)
- Payments start low and increase every 2 years
- Total interest paid is higher than Standard
- Good for borrowers expecting income growth
Initial payments may be as low as interest-only, with final payments up to three times the initial amount.
Extended Repayment Plan
The Extended Repayment Plan stretches payments over up to 25 years:
- Requires more than $30,000 in Direct Loans
- Choose between fixed or graduated payments
- Lower monthly payments but more total interest
- Repayment period up to 25 years
Consider IDR Instead
Before choosing Extended Repayment, compare it to Income-Driven plans. IDR plans often offer lower payments and potential forgiveness after 20-25 years.
SAVE Plan (Saving on a Valuable Education)
The SAVE plan (which replaced REPAYE) is the newest and often most generous income-driven plan:
Key Features:
- Payment Calculation: 5% of discretionary income for undergraduate loans, 10% for graduate loans
- Income Protection: 225% of the federal poverty line is protected
- Interest Subsidy: The government covers any interest your payment doesn't cover, preventing negative amortization
- Spousal Income: Excludes spouse's income if filing taxes separately
- Faster Forgiveness: 10 years for original balances under $12,000
Who Should Choose SAVE:
- Borrowers with undergraduate-only loans (lowest payment percentage)
- Those with high debt-to-income ratios
- Borrowers who want interest subsidies
- Those with smaller original loan balances (faster forgiveness)
PAYE (Pay As You Earn)
PAYE was the gold standard for income-driven repayment before SAVE:
Key Features:
- Payment: 10% of discretionary income
- Income Protection: 150% of poverty line
- Payment Cap: Never more than Standard 10-year payment
- Forgiveness: After 20 years of qualifying payments
Eligibility Requirements:
- Must be a "new borrower" as of October 1, 2007
- Must have received a Direct Loan disbursement on or after October 1, 2011
- Must demonstrate partial financial hardship
IBR (Income-Based Repayment)
IBR comes in two versions depending on when you became a borrower:
New Borrowers (after July 1, 2014):
- 10% of discretionary income
- 20-year forgiveness period
- 150% poverty line protection
Older Borrowers (before July 1, 2014):
- 15% of discretionary income
- 25-year forgiveness period
- 150% poverty line protection
IBR caps payments at the Standard 10-year amount and requires demonstrating partial financial hardship annually.
ICR (Income-Contingent Repayment)
ICR is the oldest income-driven plan and the only one available to Parent PLUS borrowers (after consolidation):
Key Features:
- Payment: Lesser of 20% of discretionary income OR fixed 12-year payment adjusted for income
- Income Protection: 100% of poverty line
- Forgiveness: After 25 years
- No Payment Cap: Payments can exceed Standard amount
While ICR typically results in higher payments than other IDR plans, it's the only option for Parent PLUS loans seeking income-driven repayment.
Choosing the Right Plan
Consider these factors when selecting a repayment plan:
| Factor | Best Plan Choice |
|---|---|
| Lowest monthly payment | SAVE (undergraduate) or PAYE/IBR (graduate) |
| Least total interest | Standard 10-year |
| Pursuing PSLF | SAVE or PAYE (lowest payments = most forgiveness) |
| Expecting income increase | Graduated or Extended |
| Parent PLUS loans | ICR (after consolidation) |
| Small loan balance | SAVE (10-year forgiveness for balances under $12,000) |
Loan Forgiveness Under IDR Plans
All income-driven repayment plans offer forgiveness of remaining balances after a set period:
- SAVE: 20 years for undergraduate loans, 25 years for graduate loans (10 years for original balances under $12,000)
- PAYE: 20 years
- IBR: 20 years (new borrowers) or 25 years (older borrowers)
- ICR: 25 years
Tax Implications
Through 2025, IDR forgiveness is not taxable under the American Rescue Plan Act. After 2025, forgiven amounts may be considered taxable income unless Congress extends the exclusion. PSLF forgiveness is always tax-free.
Frequently Asked Questions
Can I switch between repayment plans?
Yes, you can switch repayment plans at any time by contacting your loan servicer. However, switching from an IDR plan may cause any unpaid interest to capitalize (be added to your principal). Consider the implications before switching.
Do I have to recertify my income every year?
Yes, all IDR plans require annual income recertification. If you fail to recertify on time, your payment will increase to the Standard 10-year amount and any unpaid interest will capitalize.
What happens if my income increases significantly?
Your payment will increase proportionally, but PAYE and IBR cap payments at the Standard 10-year amount. SAVE and ICR do not have payment caps, so payments could exceed the Standard amount.
Should I consolidate my loans before choosing a plan?
It depends. Consolidation is required for certain loans to access IDR plans (like Parent PLUS for ICR). However, consolidation may reset your forgiveness timeline counter. Consult a financial advisor for your specific situation.
What's the difference between forgiveness and discharge?
Forgiveness typically refers to programs like PSLF or IDR forgiveness where remaining balances are canceled after meeting requirements. Discharge refers to cancellation due to specific circumstances like death, permanent disability, or school closure.
Can I make extra payments under an IDR plan?
Yes, you can always pay more than the required amount. Extra payments reduce your principal and total interest, but they don't reduce future required payments or change your forgiveness timeline (unless you pay off the loan entirely).