No Login Data Private Local Save

Student Loan Repayment Calculator – Standard vs IDR Plans

Education Finance calculator IDR repayment SAVE student loan
17
0
0
0
$
%
$
SAVE: 225% FPL, 10% discretionary income, 25-yr forgiveness
Frequently Asked Questions
What's the difference between Standard and IDR repayment plans?
The Standard Repayment Plan offers fixed monthly payments over 10 years (or up to 30 for consolidated loans), ensuring the loan is fully paid off. Income-Driven Repayment (IDR) plans base your monthly payment on your income and family size, typically extending the term to 20–25 years, after which any remaining balance may be forgiven. IDR plans can significantly lower monthly payments but often result in higher total interest over the life of the loan.
What is the SAVE plan and how is it different from other IDR plans?
The SAVE plan (replaced REPAYE in 2024) is currently the most generous IDR option. It uses 225% of the federal poverty level (vs. 150% for most other plans) to calculate discretionary income, meaning more of your income is protected. Key benefits include: no negative amortization (unpaid interest is subsidized by the government), lower payments for undergraduate loans (5% of discretionary income starting July 2024), and a shorter forgiveness timeline (20 years for undergrad, 25 for graduate loans).
Will I pay more in total with an IDR plan?
It depends on your income trajectory. If your income stays relatively low compared to your loan balance, IDR can lead to substantial forgiveness and lower total cost. However, if your income rises significantly over time, you may end up paying more in total interest due to the extended repayment period. Use this calculator to compare both scenarios. Generally, borrowers with high debt-to-income ratios benefit most from IDR.
Is loan forgiveness taxable?
Under the American Rescue Plan Act (ARPA), all federal student loan forgiveness—including IDR forgiveness—is federally tax-free through December 31, 2025. After that date, unless Congress extends the provision, forgiven amounts may be considered taxable income. Some states may also tax forgiven amounts. Always consult a tax professional for your specific situation.
How do I know if I qualify for an IDR plan?
Most federal Direct Loan borrowers qualify for at least one IDR plan. PAYE and IBR require that your IDR-calculated payment be lower than the Standard 10-year payment (called "partial financial hardship"). SAVE and ICR plans are available to all Direct Loan borrowers regardless of income. Parent PLUS loans are only eligible for ICR (after consolidation). Private student loans do not qualify for any federal IDR plans.
What are the 2024 federal poverty guidelines used in IDR calculations?
For 2024, the poverty guideline for a single person in the 48 contiguous states is $15,060. For a family of 4, it's $31,200. Alaska and Hawaii have higher thresholds. IDR plans multiply these guidelines by a plan-specific factor (e.g., SAVE uses 225%, meaning a single person's first ~$33,885 of income is protected). The poverty guidelines are updated annually by HHS.
Can I switch between repayment plans?
Yes! You can apply to change your federal student loan repayment plan at any time through your loan servicer or at StudentAid.gov. There's no fee to switch plans. However, switching from IBR may result in interest capitalization (unpaid interest being added to your principal). It's wise to recertify your IDR plan annually and reassess when your income or family situation changes.
🔧 Related Tools