Student Loan Repayment Calculator:
Compare All Federal Plans and Find Your Lowest Payment
The federal student loan repayment system offers eight distinct plan options ranging from the Standard 10-year plan to SAVE income-driven repayment. Each produces a different monthly payment, total interest cost, and forgiveness outcome for the same loan balance. This calculator models all plans simultaneously so you can see the full range before committing to one.
All Federal Repayment Plans: Side-by-Side Comparison
Federal student loan borrowers default to the Standard 10-year repayment plan unless they request a different plan from their servicer. The Standard plan is not always the optimal choice — for some borrowers the SAVE income-driven plan produces substantially lower payments and better outcomes even if they intend to repay in full, while for others the Standard plan minimizes total cost. The starting point is comparing all available plans for your specific balance, rate, income, and family size.
| Plan | Payment Basis | Term | Forgiveness | Interest Subsidy | Best For |
|---|---|---|---|---|---|
| Standard | Balance / rate | 10 yrs | None | None | Those who can afford it, minimizes interest |
| Graduated | Rising schedule | 10 yrs | None | None | Borrowers expecting income growth |
| Extended Standard | Balance / rate | 25 yrs | None | None | Lower payment needed; $30K+ Direct loans |
| Extended Graduated | Rising schedule | 25 yrs | None | None | Income growth + lower current payment |
| SAVE | 5 to 10% discretionary | 20 to 25 yrs | Yes | 100% subsidy | Most borrowers: lowest payment + subsidy |
| PAYE | 10% discretionary | 20 yrs | Yes | None | Lower income, partial hardship required |
| IBR (New) | 10% discretionary | 20 yrs | Yes | None | New borrowers after July 2014 |
| ICR | 20% discretionary | 25 yrs | Yes | None | Parent PLUS consolidation loans |
Key Payment Formulas
Standard Payment = P x [r(1+r)^n] / [(1+r)^n - 1] (standard amortization)
SAVE Payment = Max(0, (AGI - 225% x FPL) x 10%) / 12
SAVE Undergrad = Max(0, (AGI - 225% x FPL) x 5%) / 12
Discretionary Income = AGI - 225% x Federal Poverty Level (SAVE)
FPL = Federal Poverty Level for your family size. 2026 values: single person ~$15,060; each additional family member adds ~$5,380. SAVE uses 225% of FPL as the income protection floor, the most generous of all IDR plans.
The SAVE Plan: Most Borrowers’ Best Option
The SAVE plan (Saving on a Valuable Education) replaced REPAYE and became effective in 2023 as the most generous income-driven repayment plan available. For borrowers with low to moderate incomes relative to their loan balance, SAVE typically produces significantly lower payments than any predecessor IDR plan and includes the most powerful feature not available in any other plan: the interest subsidy that prevents the balance from growing when payments do not cover accruing interest.
SAVE Interest Subsidy: The Game-Changer
Under SAVE, if your monthly payment does not cover the interest that accrues on your loans in that month, the federal government covers 100 percent of the unpaid interest. This means your balance cannot grow beyond its current level as long as you make the required SAVE payment each month. For borrowers with high interest rates or large balances where the income-based payment is well below the monthly interest, this subsidy eliminates the negative amortization problem that plagued predecessor IDR plans where balances could grow for years despite consistent on-time payments.
Example: A borrower with $80,000 in graduate loans at 7 percent has monthly interest of approximately $467. On SAVE at $45,000 AGI (single), the payment is approximately $59 per month. The government subsidizes the remaining $408 in monthly interest, preventing any balance growth. Under the old REPAYE plan with the same payment, the $408 in unsubsidized monthly interest would have been capitalized into the principal at certain triggering events, increasing the balance and compounding future interest.
Example Calculations: $50,000 Balance at Different Income Levels
The following comparison uses a $50,000 federal student loan balance at 7 percent interest, showing monthly payments across key plans at three income levels. Family size is assumed to be one person (single borrower).
| Repayment Plan | $40K AGI (monthly) | $65K AGI (monthly) | $100K AGI (monthly) | Total Interest (10-yr) |
|---|---|---|---|---|
| Standard 10-yr | $581 | $581 | $581 | $19,724 |
| Graduated 10-yr | $325 → $976 | $325 → $976 | $325 → $976 | $24,185 |
| Extended 25-yr | $354 | $354 | $354 | $56,322 |
| SAVE (grad debt) | $40/mo | $228/mo | $478/mo | Forgiven at 25 yrs* |
| PAYE / IBR-New | $83/mo | $273/mo | $502/mo | Forgiven at 20 yrs* |
* Forgiveness amounts are taxable income in the year received for non-PSLF borrowers unless a tax exclusion applies. The remaining balance at forgiveness may be substantial depending on income growth over the repayment period.
SAVE and PSLF: The Combination That Minimizes Total Cost
For borrowers employed at qualifying public service employers, combining the SAVE plan with Public Service Loan Forgiveness produces the lowest total cost repayment outcome for high-balance borrowers. Under PSLF, the remaining balance after 120 qualifying monthly payments (10 years) is forgiven tax-free, regardless of how much of the original balance has been repaid. SAVE’s low income-based payments during the 10-year period mean the borrower pays as little as possible before receiving the tax-free forgiveness.
The PSLF-SAVE combination works best for borrowers with high balances (typically $60,000 or more), incomes that produce low IDR payments relative to the standard repayment amount, and confirmed employment at a qualifying employer for the full 10-year period. For a detailed PSLF forgiveness projection tool see our PSLF estimator guide. For optimization of IDR payment amounts through AGI reduction strategies, see our income-driven repayment optimization guide.
How to Choose Your Repayment Plan
Choose Standard or Graduated if:
You earn enough that Standard 10-year payments are affordable (typically less than 10 percent of take-home income), you are not pursuing any loan forgiveness program, and your primary goal is minimizing total interest paid. The Standard plan is the most cost-efficient repayment structure for borrowers who can afford it. Graduated is appropriate when your current income is low but expected to increase substantially over the next 5 to 7 years, since the starting payments are lower and rise as income grows.
Choose SAVE if:
Your income-based SAVE payment is meaningfully below the Standard 10-year payment AND you either qualify for PSLF (in which case SAVE minimizes the amount paid before forgiveness) or you anticipate the balance being forgiven under the 20 to 25-year IDR forgiveness provision (in which case SAVE’s interest subsidy prevents balance growth during the repayment period). SAVE is also appropriate as a safety net for borrowers who can normally afford Standard payments but want protection against income disruption, since SAVE payments automatically decrease if income falls.
Avoid Extended Repayment if:
The Extended 25-year plan typically produces the highest total interest cost of any federal repayment option for borrowers who repay in full. The lower monthly payment comes at the cost of 15 additional years of interest accrual on a balance that reduces much more slowly. For most borrowers who need a lower payment, SAVE achieves the lower payment objective with less total cost than the Extended plan because SAVE’s interest subsidy prevents balance growth and the forgiveness provision caps the total repayment period.
Key Takeaways
Federal student loan repayment plan selection is one of the highest-value financial decisions a borrower makes because the difference in total cost between the optimal and suboptimal plan can easily reach $20,000 to $100,000 or more for high-balance borrowers. The Standard 10-year plan is optimal for borrowers who can afford the payment and are not pursuing forgiveness. The SAVE plan is optimal for borrowers pursuing PSLF, borrowers with income low enough relative to their balance that IDR payments are well below Standard payments, and borrowers who want protection against the balance growing during periods of financial stress. For borrowers in the private sector with high income and no forgiveness path, refinancing to a lower private rate may be the best strategy — but only after confirming the interest savings exceed any forgiveness value forfeited.
Student Loan Strategy Series
Frequently Asked Questions
What are the federal student loan repayment plan options?
Federal student loans offer eight repayment plan options: Standard (10-year fixed), Graduated (rising payments over 10 years), Extended Standard (25-year fixed), Extended Graduated (rising payments over 25 years), and four income-driven plans — SAVE, PAYE, IBR (new and old), and ICR. SAVE is the newest and most generous IDR plan, calculating payments at 5 percent of discretionary income for undergraduate debt and 10 percent for graduate debt with a higher income protection floor than predecessor plans. All IDR plans forgive remaining balances after 20 or 25 years depending on the plan and loan type.
How is the SAVE plan payment calculated?
The SAVE payment is 10 percent of discretionary income divided by 12, where discretionary income equals AGI minus 225 percent of the federal poverty level for the borrower’s family size. For 2026 (single person), the poverty level is approximately $15,060, making the income protection floor $33,885. A single borrower with $55,000 AGI has discretionary income of $21,115, producing a monthly SAVE payment of approximately $176 for graduate debt. For undergraduate-only debt, the rate is 5 percent rather than 10 percent, cutting the payment in half.
What is the difference between PAYE and SAVE?
SAVE uses a higher income protection floor (225 percent of poverty) versus PAYE (150 percent), producing lower payments. SAVE calculates undergraduate payments at 5 percent versus 10 percent for PAYE. SAVE includes an interest subsidy preventing balance growth; PAYE does not. SAVE has no income cap requirement while PAYE requires partial financial hardship. SAVE forgives after 20 years for undergraduate borrowers and 25 years for graduate; PAYE forgives all after 20 years. Most borrowers with exclusively undergraduate debt and low to moderate incomes find SAVE produces lower payments than PAYE.
Which plan minimizes total interest paid?
The Standard 10-year plan minimizes total interest paid for borrowers who can afford the payment and are not pursuing forgiveness, because it pays off the balance in the shortest time at the contractual rate. Every additional year of repayment adds interest cost. IDR plans result in higher total interest than Standard if the borrower repays in full, because lower payments mean slower principal reduction. The exception is when IDR leads to forgiveness — PSLF tax-free forgiveness or IDR forgiveness after 20 to 25 years can reduce total cost below Standard repayment for high-balance borrowers in the right circumstances.
How does family size affect income-driven repayment?
Larger family sizes increase the federal poverty guideline, which increases the income protection floor and reduces the discretionary income subject to the payment percentage. For 2026, the poverty level increases approximately $5,380 per additional family member. A family of four has a SAVE income protection floor of approximately $70,200. A borrower earning $80,000 with a family of four has only $9,800 in discretionary income, producing a SAVE payment of approximately $68 per month on graduate debt, compared to approximately $384 per month for a single person at the same income.
Can I switch repayment plans after enrolling?
Yes, federal loan borrowers can switch repayment plans at any time by contacting their servicer, with no fee and no waiting period. Switching from IDR to Standard does not reset the PSLF qualifying payment count — prior qualifying payments still count. However, Standard payments must meet the qualifying payment requirements to count for PSLF. Switching plans affects your monthly payment immediately upon the servicer processing the change, typically effective the following billing cycle. If your income has decreased, you can request an early income recertification without waiting for the annual deadline to immediately lower your IDR payment.
What happens to unpaid interest under IDR?
Under SAVE, the government subsidizes 100 percent of interest not covered by the monthly payment, preventing balance growth. Under PAYE and IBR, unpaid interest can be capitalized into principal at triggering events including leaving IDR, failing to recertify, or exceeding the PAYE hardship threshold. Capitalization increases the principal subject to future interest accrual. ICR does not capitalize unpaid interest during the plan but capitalization occurs at other triggering events. SAVE’s interest subsidy is its most significant advantage over all predecessor IDR plans for borrowers with payments substantially below their monthly interest accrual.
How do I recertify income for IDR annually?
Annual income recertification requires submitting updated income and family size to your servicer by the deadline, typically 12 months from enrollment or last recertification. Most servicers allow online recertification through studentaid.gov using IRS data retrieval, taking approximately 10 minutes. Missing the deadline places you on Standard Repayment until recertification is completed, and unpaid interest may be capitalized. Set a reminder 60 days before your deadline. If your income has decreased since last recertification, request an early recertification immediately to lower your payment without waiting for the annual date.
What is the student loan interest tax deduction?
The student loan interest deduction allows up to $2,500 of qualified student loan interest to be deducted from federal AGI annually, whether or not you itemize. For 2026, the deduction phases out for single filers with MAGI between $75,000 and $90,000 and married filing jointly between $155,000 and $185,000. Both federal and private student loan interest qualifies if the loan funded qualified educational expenses. The deduction reduces after-tax borrowing cost by the interest paid times your marginal tax rate — for a borrower in the 22 percent bracket paying $2,500 in interest, the deduction reduces federal taxes by $550.
