Student Loan Repayment: Choose the Plan That Saves You the Most
With the SAVE plan blocked by courts, student loan borrowers face uncertainty about income-driven repayment options. Standard, graduated, extended, and IDR plans each have dramatically different monthly payments and total costs.
About This Calculator: Student Loan Repayment
Why: The wrong repayment plan can cost you tens of thousands in extra interest. IDR plans lower monthly payments but extend the term and increase total interest. This calculator helps you find the optimal balance.
How: We compare monthly payments and total costs across Standard, Graduated, Extended, and IDR plans (PAYE, REPAYE, IBR, ICR) using your loan balance, interest rate, income, and family size. We account for interest subsidies and forgiveness timelines.
Quick Examples
Click a scenario to load example values based on real-world student loan situations:
📚 Standard Repayment
Fixed payments over 10 years - fastest payoff
Click to use
💰 Income-Based (IBR)
10-15% of discretionary income, 20-25 year forgiveness
Click to use
🎓 PSLF Track (10 years)
Public service loan forgiveness after 120 qualifying payments
Click to use
🆕 New Borrower (RAP)
New Repayment Assistance Plan starting July 2026
Click to use
🎓 High Balance Graduate Loans
Large graduate loan balance with income-driven options
Click to use
Enter Your Loan Details
Loan Information
Income Information
Eligibility
📚 Official Data Sources
Important Disclaimer
This calculator provides estimates only. Federal student loan programs and forgiveness rules change frequently. The SAVE Plan is currently subject to litigation. Always verify with StudentAid.gov or your loan servicer.
Last verified: February 4, 2026 | Data source: StudentAid.gov
⚠️For educational and informational purposes only. Verify with a qualified professional.
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CalculateWhat is a student loan repayment calculator?
A student loan repayment calculator compares monthly payments, total costs, and forgiveness amounts across all federal repayment plans including Standard, IBR, PAYE, the new RAP plan (July 2026), and PSLF. It helps you find the plan that minimizes your total cost or monthly payment based on your income and loan balance.
🔑 Key Takeaways
- •Standard vs IDR plans: Standard repayment offers lowest total cost over 10 years, while IDR plans (IBR, PAYE, RAP) provide lower monthly payments but longer terms (20-25 years) with potential forgiveness
- •10yr vs 20-25yr terms: Standard plan pays off in 10 years with fixed payments. IDR plans extend to 20-25 years with income-based payments that adjust annually
- •Interest capitalization: Unpaid interest may capitalize (be added to principal) on some plans, increasing total cost. SAVE plan prevents capitalization with interest subsidy
- •PSLF eligibility: Public Service Loan Forgiveness requires 120 qualifying payments (10 years) while working for qualifying employers. Only Direct Loans qualify, and forgiveness is tax-free
💡 Did You Know?
$1.77T total debt
Total outstanding student loan debt in the United States as of 2026, affecting millions of borrowers
$37,850 avg balance
Average student loan balance per borrower, with graduate students typically having higher balances
43.5M borrowers
Number of Americans with federal student loans, representing a significant portion of the population
$350/mo avg payment
Average monthly student loan payment under standard repayment plan for typical borrower
8 repayment plans
Federal student loans offer 8 different repayment plans: Standard, Graduated, Extended, IBR, PAYE, REPAYE, ICR, and RAP (starting July 2026)
10.8% default rate
Percentage of borrowers who default on their student loans, highlighting the importance of choosing the right repayment plan
💼 Expert Tips
- 1.Compare all IDR plans: Don't just choose IBR. Compare PAYE, REPAYE, ICR, and the new RAP plan (if eligible). Each has different payment percentages, forgiveness timelines, and eligibility requirements. Use StudentAid.gov Loan Simulator for personalized estimates.
- 2.Don't default — use IDR: If you can't afford standard payments, switch to an income-driven plan immediately. Defaulting damages credit and triggers collection actions. IDR plans can reduce payments to $0 for low-income borrowers.
- 3.Autopay 0.25% discount: Enroll in automatic payments to receive a 0.25% interest rate reduction. This small discount saves hundreds or thousands over the life of the loan.
- 4.Recertify income annually: IDR plans require annual income recertification. Submit on time to avoid payment increases or being switched to standard plan. Use prior-prior year tax return if income fluctuates.
📊 Comparison Table
| Tool | Features | Best For |
|---|---|---|
| This Calculator | Compare Standard, IBR, PAYE, RAP, and PSLF plans. Calculate monthly payments, total costs, forgiveness amounts, and balance projections | Comprehensive repayment plan comparison and decision-making |
| StudentAid.gov Loan Simulator | Official federal tool with personalized estimates, plan eligibility, and payment calculations | Official government estimates and plan eligibility verification |
| NerdWallet | Student loan calculator with repayment plan comparison, refinancing options, and lender reviews | Comparing repayment plans and exploring refinancing options |
📈 Infographic Stats
What are Student Loan Repayment Plans?
Student loan repayment plans determine how much you pay each month and how long it takes to pay off your loans. With the SAVE plan ending and the new Repayment Assistance Plan (RAP) starting in July 2026, borrowers need to understand their options to choose the best plan for their financial situation.
Standard Repayment
Fixed monthly payments over 10 years. Fastest payoff with lowest total interest.
Key Features:
- 10-year term
- Fixed payments
- Lowest total cost
- Default plan
Income-Based Repayment (IBR)
10-15% of discretionary income. Forgiveness after 20-25 years.
Key Features:
- 10% (undergrad) or 15% (grad)
- 20-25 year forgiveness
- Payment cap protection
- Available to all borrowers
Pay As You Earn (PAYE)
10% of discretionary income. Forgiveness after 20 years.
Key Features:
- 10% of discretionary income
- 20-year forgiveness
- Payment cap at standard
- Must be new borrower
Repayment Assistance Plan (RAP)
New plan starting July 2026. Replaces SAVE plan for new borrowers.
Key Features:
- Starts July 2026
- For new borrowers only
- Estimated 5-10% of income
- 15-20 year forgiveness
Public Service Loan Forgiveness (PSLF)
Forgiveness after 120 qualifying payments (10 years) for public service workers.
Key Features:
- 10% of discretionary income
- 120 qualifying payments
- Tax-free forgiveness
- Public service required
How Do Repayment Plans Work?
Each repayment plan calculates your monthly payment differently. Understanding how payments are calculated helps you choose the plan that best fits your financial situation and goals.
📋 How Payments Are Calculated
Standard Repayment
- 1Fixed monthly payment calculated using amortization formula
- 2Same payment amount every month for 10 years
- 3Loan fully paid off at end of term
- 4Lowest total interest paid
Income-Driven Plans (IBR/PAYE/RAP)
- 1Calculate discretionary income (AGI - 150% poverty guideline)
- 2Apply percentage (10-15% depending on plan)
- 3Recertify income annually
- 4Remaining balance forgiven after term
When Should You Choose Each Plan?
The best repayment plan depends on your income, loan balance, career goals, and financial situation. Here's when each plan makes the most sense:
✅ Choose Standard If:
- • Monthly payment is affordable
- • Want to pay off loans quickly
- • Prefer predictable payments
- • Want lowest total cost
- • Income is stable and sufficient
✅ Choose Income-Driven If:
- • Standard payment is unaffordable
- • Income is low relative to debt
- • Expect income to increase over time
- • Want lower monthly payments now
- • May qualify for forgiveness
✅ Choose PSLF If:
- • Work for government or nonprofit
- • Plan to stay in public service 10+ years
- • Have high loan balance
- • Want tax-free forgiveness
- • Can make 120 qualifying payments
⚠️ Important Considerations
- • Forgiveness may be taxable (except PSLF)
- • Income-driven plans require annual recertification
- • RAP only available to new borrowers (July 2026+)
- • PSLF requires qualifying employment
- • Switching plans may reset forgiveness clock
Student Loan Calculation Formulas
Discretionary Income
Used to calculate income-driven repayment amounts. Poverty guidelines vary by family size and state.
Standard Monthly Payment
Where: M = Monthly Payment, P = Principal, r = Monthly Interest Rate, n = Number of Payments (120 for 10 years)
Income-Driven Monthly Payment
Percentage varies: IBR (10-15%), PAYE (10%), RAP (estimated 5-10%). Payment may be capped at standard payment amount.
PSLF Qualification
Must work full-time for qualifying employer (government or 501(c)(3) nonprofit) while making payments. Forgiveness is tax-free.
2026 Student Loan Changes
🔄 Important Updates
- • SAVE Plan Ending: The SAVE (Saving on A Valuable Education) plan is being phased out
- • New RAP Plan: Repayment Assistance Plan (RAP) starts July 2026 for new borrowers
- • Existing Borrowers: Current borrowers can remain on existing plans or switch to new options
- • Eligibility: RAP is only available to borrowers who take out loans after July 2026
- • Terms: RAP terms are still being finalized - this calculator uses estimated percentages
📋 How to Use This Calculator
- Enter Loan Balance: Total outstanding student loan debt
- Add Interest Rate: Your weighted average interest rate
- Input Income: Annual gross income for income-driven plans
- Set Family Size: Number of people in your household
- Select Filing Status: Single, married, or other
- Compare Plans: Review all repayment options side by side
Frequently Asked Questions
What is an income-driven repayment plan?
Income-driven plans (IBR, PAYE, RAP) cap monthly payments at a percentage of your discretionary income. Payments adjust annually with income changes, and remaining balances may be forgiven after 20-25 years.
Should I choose the lowest monthly payment?
Not necessarily. Lower payments often mean higher total interest over time. Consider your cash flow needs vs. total cost. If pursuing PSLF, lower payments maximize forgiveness. Otherwise, paying more can save significantly on interest.
What is Public Service Loan Forgiveness (PSLF)?
PSLF forgives remaining loan balances after 120 qualifying payments (10 years) while working for government or nonprofit employers. You must be on an income-driven plan and work full-time. Forgiveness is tax-free.
Can I switch repayment plans later?
Yes, you can switch repayment plans at any time by contacting your loan servicer. However, some plans have eligibility requirements based on income or loan balance. Switching plans may affect forgiveness timelines.