Student Loan Repayment Calculator
Enter your federal student loan balance, interest rate, and income to compare your monthly payment and total cost across every repayment plan, from Standard 10-year to Income-Based and PAYE. The calculator also shows how the COVID-19 forbearance period (March 2020 to September 2023) reduced the interest you owe and what it means for your payoff timeline.
How federal student loan repayment works
Federal student loans offer multiple repayment paths, from the Standard 10-Year plan with fixed equal monthly payments to income-driven plans that cap your payment at a percentage of your discretionary income. The Standard plan minimizes total interest because you pay the loan off faster. Income-driven plans (IBR, PAYE, REPAYE, ICR) extend your term to 20 to 25 years and base payments on what you earn minus a poverty-line threshold rather than on your loan balance, so payments can be very low or even zero if your income is modest. At the end of the income-driven term, any remaining balance is forgiven, though that forgiven amount may be taxable.
COVID-19 forbearance: what it was and why it still matters
Starting March 13, 2020, the federal government suspended payments on most federally held student loans and set the interest rate to 0%. This pause ran through multiple extensions and officially ended September 1, 2023, covering roughly 42 months. During that window, no interest accrued on eligible loans, which means borrowers who already had loans before 2020 accumulated significant interest savings compared to what they would have owed under normal conditions. Borrowers who kept making voluntary payments during forbearance got an additional benefit: because the interest rate was 0%, every dollar paid went directly to reducing principal rather than covering interest first, accelerating payoff significantly. If your loan existed before September 2023, this calculator shows both the interest you saved and the principal reduction from any voluntary payments.
Discretionary income and income-driven repayment
Income-driven plans compute your payment from your "discretionary income," defined as your Adjusted Gross Income minus 150% of the federal poverty guideline for your family size. For 2024, the poverty guideline is $15,060 for one person, with $5,380 added for each additional household member. So a borrower earning $55,000 with a family of one has a discretionary income of about $32,450 ($55,000 minus $22,590), and a 10% IDR payment would be roughly $270 per month. Larger families reduce the discretionary income figure, which directly lowers your payment. You recertify your income each year, so payments adjust if your earnings change.
Choosing the right plan and planning for forgiveness
The best plan depends on your income relative to your loan balance. If your loan is small and your income is reasonable, the Standard 10-Year plan saves the most total money. If your balance is large relative to income, an income-driven plan keeps payments manageable, and if your balance still has a significant remaining amount after the forgiveness term (20 or 25 years), you may receive loan forgiveness. Public Service Loan Forgiveness (PSLF) is a separate program that forgives remaining balances tax-free after just 10 years of qualifying payments while working full-time for a government or nonprofit employer. Consider also whether refinancing to a private loan makes sense: you could get a lower rate, but you permanently lose federal protections like forbearance, income-driven options, and forgiveness programs.
Federal Student Loan Repayment Plan Comparison
| Plan | Term | Payment basis | Forgiveness | Best for |
|---|---|---|---|---|
| Standard 10-Year | 10 years | Fixed equal payments | None | Lowest total interest |
| Graduated 10-Year | 10 years | Low start, rises every 2 years | None | Expect rising income |
| Extended Fixed 25-Year | 25 years | Fixed equal payments | None | Lower monthly payment |
| Extended Graduated 25-Year | 25 years | Low start, rises every 2 years | None | Very low starting payment |
| IBR | 20-25 years | 10-15% of discretionary income | After 20-25 years | Moderate income |
| PAYE | 20 years | 10% of discretionary income | After 20 years | High debt-to-income |
| REPAYE | 20-25 years | 10% of discretionary income | After 20-25 years | Any income level |
| ICR | 25 years | 20% discretionary or 12-yr fixed (lesser) | After 25 years | Parent PLUS consolidation |
Key characteristics of federal repayment plans for Direct Loans. Income-driven plans require annual income recertification.
Frequently asked questions
Did COVID-19 forbearance affect all student loans?
No. The COVID-19 forbearance applied only to federally held student loans, primarily Direct Loans and most FFEL loans held by the Department of Education. Privately held FFEL loans, Perkins loans held by schools, and all private student loans were not covered. If you had private loans, interest continued to accrue throughout the pandemic unless your private lender offered its own relief program.
Did interest accrue during the COVID-19 payment pause?
No, not for eligible federal loans. The interest rate on covered federal loans was set to 0% from March 13, 2020, through August 31, 2023. This means the balance on those loans did not grow at all during the pause, which is a major benefit over a standard deferment where interest typically continues to accrue.
What happens if I made payments during the forbearance period?
Because the interest rate was 0%, 100% of any voluntary payment you made during the forbearance reduced your loan principal directly. There was no interest to pay first. Borrowers who kept making their normal payments knocked down their balance significantly faster than they would have under normal amortization, shortening their repayment timeline and reducing total interest after forbearance ended.
What is discretionary income for income-driven repayment?
Discretionary income is your Adjusted Gross Income minus 150% of the federal poverty guideline for your household size. The poverty guideline is updated annually by the Department of Health and Human Services. A larger family size raises the threshold and lowers your discretionary income, which reduces your monthly IDR payment. A single borrower earning $55,000 in 2024 has a discretionary income of about $32,450 using the current guidelines.
Is loan forgiveness under income-driven plans taxable?
Historically, forgiven student loan balances under IDR plans were treated as taxable income in the year of forgiveness. The American Rescue Plan Act of 2021 temporarily exempted student loan forgiveness from federal income tax through December 31, 2025. Tax treatment after that date is uncertain, so borrowers expecting forgiveness should monitor tax law changes and potentially set aside savings to cover a possible tax bill on the forgiven amount.
What is the difference between IBR, PAYE, and REPAYE?
All three are income-driven plans that cap your payment at a percentage of discretionary income. IBR caps payments at 10% of discretionary income for newer borrowers (15% for loans taken before July 1, 2014) with a cap equal to the Standard 10-Year payment. PAYE is 10% of discretionary income for 20 years with the same cap, but requires you to have borrowed after October 2007. REPAYE is also 10% of discretionary income but has no cap at the Standard payment, meaning very high earners can pay more than under other plans. REPAYE also gives a partial interest subsidy if your payment does not cover accruing interest.
What if I want to pay off my loan faster?
There is no penalty for prepaying federal student loans. Making extra payments on top of your required minimum reduces principal faster, which cuts the interest that accrues in future months. The quickest payoff strategy is to pay the Standard 10-Year amount (or more) even if you enrolled in an IDR plan, using the lower IDR payment as a safety net rather than a target. Even modest extra payments of $50 to $100 per month can shorten a 25-year term by several years.