Student Loan Calculator — Repayment Plans & PSLF
Compare all federal student loan repayment plans (Standard, Graduated, Extended, IBR, PAYE, SAVE) with full IDR calculations, PSLF tracker, and private refinancing comparison.
Used to calculate IDR payment amounts
What Is the Student Loan Calculator — Repayment Plans & PSLF?
Federal student loans offer multiple repayment plans, each with different monthly payment amounts, total costs, and forgiveness provisions. The best plan depends on your income relative to your debt balance and your career plans.
- ›Standard plan — Fixed payments over 10 years. Highest monthly payment but lowest total interest. Best if you can afford it.
- ›IDR plans (IBR, PAYE, SAVE) — Payments scale with income. Lower monthly cash flow burden, but you may pay more over the full term unless balance is forgiven.
- ›PSLF — The highest-value federal benefit for borrowers with large balances working in public service. Forgiveness is tax-free after 10 years of qualifying payments on an IDR plan. Best combined with SAVE or PAYE.
- ›Private refinancing — Can reduce interest rate but permanently eliminates all federal protections: IDR plans, PSLF, deferment/forbearance, and income-based forgiveness.
Formula
Standard Plan Monthly Payment
M = P × r(1+r)¹²⁰ / ((1+r)¹²⁰ − 1) [10-year, 120 payments]
IBR Monthly Payment
IBR = max($5, (AGI − 1.5 × Poverty Line) × 10% / 12)
SAVE Monthly Payment
SAVE = max($5, (AGI − 2.25 × Poverty Line) × 5% / 12) [undergrad]
PSLF: Tax-Free Forgiveness
Remaining balance forgiven after 120 qualifying payments, tax-free
| Plan | Term | Payment Cap | Forgiveness |
|---|---|---|---|
| Standard | 10 yr | Fixed amortizing | None |
| Graduated | 10 yr | Starts lower, increases every 2 yr | None |
| Extended | 25 yr | Fixed amortizing | None |
| IBR | 25 yr | 10% discretionary income | Taxable at year 25 |
| PAYE | 20 yr | 10% discretionary income | Taxable at year 20 |
| SAVE | 20/25 yr | 5% discr. (undergrad) | Taxable (rules evolving) |
How to Use
- 1Enter loan balance: Your current total federal student loan balance. For multiple loans, sum them together.
- 2Enter interest rate: Use your weighted average interest rate if you have multiple loans. 2024-25 Direct Subsidized/Unsubsidized: 6.53%.
- 3Enter annual income: Your gross annual income. This determines your IDR plan payment amounts.
- 4Set family size: Include yourself and any dependents. Larger family sizes raise the poverty line used in IDR calculations, reducing payments.
- 5Compare all plans: Review the table showing monthly payment, total paid, interest, forgiven amount, and years for each plan.
- 6Check refinance savings: Toggle the refinance section and enter a private rate to see if refinancing would save money — and the tradeoffs.
- 7Track PSLF progress: If you work for a qualifying employer, enter your qualifying payment count to see how many remain until tax-free forgiveness.
Example Calculation
$50,000 balance at 6.53%, $55,000 income, family of 1
Standard (10-yr): $565/mo | $67,800 total | $17,800 interest
Graduated: $340→$680 | $68,400 total | $18,400 interest
Extended (25-yr): $340/mo | $102,000 total | $52,000 interest
IBR (10%): $235/mo | 80k paid + forgiven | ~$45k forgiven
PAYE (10%): $235/mo | 56k paid + forgiven | ~$38k forgiven
SAVE (5%): $117/mo | 28k paid + forgiven | ~$50k forgiven
Which plan is best?
For a $55,000 income borrower: SAVE has the lowest monthly payment ($117/mo vs $565/mo on Standard). If pursuing PSLF with a public service job, SAVE maximizes the tax-free amount forgiven after 10 years. Without PSLF, Standard minimizes total interest. The "best" plan depends entirely on your income trajectory, career sector, and risk tolerance for IDR forgiveness policy changes.
Understanding Student Loan — Repayment Plans & PSLF
2024–25 Federal Loan Interest Rates
- ›Direct Subsidized Loans (undergraduate): 6.53%
- ›Direct Unsubsidized Loans (undergraduate): 6.53%
- ›Direct Unsubsidized Loans (graduate/professional): 8.08%
- ›Direct PLUS Loans (grad or parent): 9.08%
Rates are set each July 1 based on the 10-year Treasury note yield plus a fixed add-on. Private loan rates vary by lender and credit profile.
IDR Forgiveness: The Taxability Question
Loan amounts forgiven under IBR, PAYE, and SAVE after 20–25 years may be taxable as ordinary income in the year of forgiveness — potentially creating a substantial tax bill. For example, $50,000 in forgiven debt at a 22% tax rate generates an $11,000 tax liability. The American Rescue Plan exempted IDR forgiveness from taxes through 2025; current law after 2025 is uncertain.
PSLF forgiveness is always tax-free under IRC § 108(f)(1), regardless of federal legislation changes.
The Refinancing Trap
Private student loan refinancing can lower your interest rate, especially if your credit score has improved since graduation. However, refinancing converts federal loans to private loans, permanently and irrevocably eliminating access to: income-driven repayment, PSLF, deferment and forbearance programs, and any future federal forgiveness programs. For borrowers with high debt-to-income ratios or public service careers, the federal protections are often worth more than the interest savings.
Legal Disclaimer
IDR calculations are estimates. Actual payments depend on your servicer's annual income recertification, loan type eligibility, and regulatory changes. PSLF requires employment certification and qualifying payment verification through MOHELA. Policy details subject to change. See studentaid.gov/idr and studentaid.gov/repayment-plans for official guidance.
Frequently Asked Questions
What is the SAVE plan and how is it different from IBR?
SAVE (Saving on a Valuable Education) replaced REPAYE in 2023 and is typically the most generous IDR plan for undergraduate borrowers.
- ›Income exemption: SAVE uses 225% of the federal poverty line vs 150% for IBR — a much larger exemption.
- ›Payment cap: undergraduate loans capped at 5% of discretionary income; IBR caps at 10%.
- ›Interest subsidy: unpaid interest does not capitalize — the government covers the difference.
- ›Forgiveness term: 20 years for undergraduate-only debt; 25 years if any graduate debt is included.
For borrowers with large debt relative to income, SAVE often produces the lowest monthly payment of any federal plan — sometimes as low as $0.
Can I switch repayment plans after I start?
Yes — federal borrowers can change repayment plans at any time by contacting their servicer. However, some switches have consequences.
- ›Switching between IDR plans: previous qualifying payments count toward PSLF and forgiveness.
- ›Switching from IDR to Standard: resets forgiveness progress — qualifying payment count may be lost.
- ›Switching from IDR to Extended: same risk as above; non-IDR plans do not count for forgiveness.
- ›PSLF switches: switching between qualifying IDR plans preserves your 120-payment count.
Always verify the impact of a plan change with your servicer before switching, especially if you're partway toward forgiveness.
What qualifies as a PSLF-qualifying employer?
PSLF qualifying employer status depends on the organization's structure, not your job title or function.
- ›Always qualifies: federal, state, local, and tribal government organizations at any level.
- ›Always qualifies: 501(c)(3) non-profit organizations regardless of the type of services provided.
- ›May qualify: other non-profits providing public services in specific categories (public health, public safety, education, etc.).
- ›Never qualifies: private for-profit employers, even if your role serves the public interest.
Verify your employer's eligibility at studentaid.gov/pslf/employer-search before relying on PSLF as your repayment strategy.
What happens if I cannot make my student loan payment?
Federal loans offer multiple protections before default. Contact your servicer immediately — options are far better before you miss a payment.
- ›IDR plans: may reduce your payment to $0 if your income is low enough relative to the poverty line.
- ›Deferment: pauses payments for qualifying reasons (in-school, military, economic hardship).
- ›Forbearance: pauses up to 3 years cumulative for general hardship; interest accrues on all loan types.
- ›Default consequences: credit damage, wage garnishment, tax refund seizure, loss of IDR eligibility.
Default is avoidable in nearly all circumstances — $0/month IDR payments still count toward PSLF and forgiveness, and prevent default entirely.
Is the forgiven amount on SAVE taxable?
Under current law, IDR forgiveness after 20–25 years may be taxable as ordinary income — a "tax bomb" in the year of forgiveness.
- ›American Rescue Plan (2021): exempted IDR forgiveness from federal tax through December 31, 2025.
- ›After 2025: current law treats IDR forgiveness as taxable income unless Congress extends the exemption.
- ›PSLF is always tax-free under IRC § 108(f)(1) — not subject to legislative uncertainty.
- ›State tax treatment varies — some states conformed to the ARP exemption; others did not.
If your forgiveness event is 15–20+ years away, tax law will almost certainly have changed. Consult a tax professional when making long-term IDR plan decisions.