Student Loan Repayment Calculator
Calculate your income-driven repayment plan options
Loan Information
Repayment Results
Payment Breakdown
Payment Comparison
Lower Monthly Payments
Income-driven repayment plans cap your monthly student loan payment at a percentage of your discretionary income, making payments more manageable based on your financial situation.
Potential Loan Forgiveness
After 20-25 years of qualifying payments (depending on the plan), any remaining loan balance may be forgiven. Public Service Loan Forgiveness is available after 10 years for qualifying employment.
This calculator provides estimates only. Actual loan terms may vary based on your specific loan servicer and eligibility. Consult with your loan servicer for precise repayment information.
How to Use Student Loan Repayment Calculator: Income Driven Plans ?
The Student Loan Repayment Calculator: Income Driven Plans tool is very easy to use because its dashboard is very simple and clean. This tool will help you calculate your loan repayment by entering some loan information such as the loan amount, interest rate, family size, and repayment plan. Let me explain it step-by-step.
Note :If you want to calculate student loan forgiveness, you can use this tool. This tool is completely free.
Step 1: Enter Loan Amount
Enter the total loan amount, for example, $1,000.
Step 2: Enter Interest Rate
Enter the interest rate at which you took the loan, for example, 12%.
Step 3: Enter Annual Income
Enter your family’s annual income. If you are going to repay the loan alone, enter your annual income, for example, $10,000.
Step 4: Enter Family Size
Enter the number of family members in your family, for example, 5.
Step 5: Enter Repayment Plan
Enter your repayment plan. Which repayment plan should I choose? REPAYE, IBR, PAYE, ICR.
Example: I took out a $2,000 loan at an interest rate of 12%. My annual family income is $10,000 and I have 5 family members. Is my repayment plan IBR (Income Based Repayment Plan)?
Result: Monthly Payment – $5
Total Amount Paid – $1,500
Loan Forgiveness – $30,152
What is Student Loan Repayment Calculator: Income Driven Plans Tool ?
Student Loan Repayment Calculator: Income Driven Plans tool is a tool that helps you calculate your student loan repayment plan based on plans like REPAYE, PAYE, ICR, and IBR.
REPAYE, PAYE, ICR, and IBR?
REPAYE (Revised Pay As You Earn)
This is the most common plan. Under this plan, you pay 10% of your monthly salary as your monthly loan payment. The best part is that if your salary is low, your monthly loan payment will also be low. But as you know, everything has its pros and cons, similarly this plan also has its cons. Like whatever the total interest amount is on your loan amount, you will have to pay half of it and the government will pay half, but in this way the interest amount becomes more than the loan amount.
PAYE (Pay As You Earn)
This plan is the elder brother of RPAYE. In this plan also, you have to pay 10% of your monthly salary as monthly payment of your loan. In this plan, you also get a good subsidy on the interest amount. But there are some eligibility criteria for this plan like you should be a new borrower and your loan should have been taken after 2007.
IBR (Income-Based Repayment)
This plan is very old because it has some old policies like if you took the loan before 2014 then the monthly loan payment will be 15% of your monthly salary and if you took the loan after 2014 then the monthly loan payment will be 10% of your monthly salary. This plan is for those who don’t qualify for the PAYE plan.
ICR (Income-Contingent Repayment)
This is the last plan, and it’s specifically for those with a Parent PLUS Loan. The monthly loan payment will either be 20% of your salary or calculated using a different method.
Final Advice:
If you’re eligible, PAYE is generally considered the best option because it has a payment cap. If not, consider RPAYE or IBR. And if you have a Parent PLUS loan, ICR is the only option.
Before taking any of these plans, please check the official loan simulator (studentloans.gov) by entering your exact details.
Why a Student Loan Repayment Calculator is Helpful for You?
This tool allows you to calculate your student loan repayment based on different plans and you can try each plan to see which one works best for you.
Common Mistakes to Avoid
These are some mistakes that most people make and then they face problems, so you should avoid these mistakes.
- Forgetting yearly recertification
- Choosing a plan without understanding the tax implications
- Not updating income after marriage
- Ignoring the tax consequences of loan forgiveness
Federal Student Loan Interest Rates – Complete Guide
Current Rates (for the 2024-2025 academic year)
Direct Undergraduate Loans:
Rate: 6.53% (July 1, 2024 – June 30, 2025)
This rate is fixed – will remain the same for the entire loan term.
Direct Graduate Loans:
Rate: 8.08% (same period)
Higher for undergraduates because the risk is considered higher.
Parent PLUS & Grad PLUS Loans:
Rate: 9.08% (highest among all)
No maximum limit – the more you borrow, the higher the interest.
Frequently Asked Questions
Q: Will bonuses or overtime pay make a difference?
Yes, because these will be added to your total taxable income. The payment may increase at the time of recertification next year.
Q: Are those with part-time jobs also eligible?
Yes! No matter how low your income, you are eligible. Payment may be zero if your income is very low.
Q: How will the income of freelancers or self-employed be calculated?
Income will be verified through your tax return. Net income (after business expenses) is considered for freelancers.
Q: What do I need to do if I change jobs?
Nothing! As long as your income remains the same, your payment will remain the same. You will need to report your new income only during the new year’s recertification.
Q: Can I change my plan later?
Absolutely! I can switch at any time. There is no penalty.