Student Loan Repayment Plan Comparison

Compare federal student loan repayment plans: Standard, Graduated, Extended, and income-driven (IBR, PAYE, SAVE). See total paid and potential forgiveness.

About the Student Loan Repayment Plan Comparison

Federal student loans offer multiple repayment plans — each with different monthly payments, timelines, and total costs. The standard 10-year plan has the highest payments but the lowest total cost. Income-driven plans cap payments at a percentage of your discretionary income and offer forgiveness after 20–25 years.

Choosing the right plan depends on your income, balance, and career trajectory. A high-income borrower may pay less overall on the standard plan. A public service worker might benefit most from an income-driven plan combined with Public Service Loan Forgiveness. Understanding the trade-offs is critical.

This calculator compares the major federal repayment plans using your specific loan balance and income. See monthly payments, total amounts paid, and potential forgiveness amounts for each plan — then choose the one that best fits your financial situation. Because choosing the wrong repayment plan can cost tens of thousands of dollars over the life of the loan, running the comparison before you commit is one of the most valuable financial exercises a borrower can do.

Why Use This Student Loan Repayment Plan Comparison?

The difference between repayment plans can be tens of thousands of dollars. A 10-year standard plan on $50,000 at 6% costs $66,612 total. An income-driven plan with forgiveness might cost $45,000 total for a moderate earner — or $90,000 for a high earner who pays for 20+ years without forgiveness. You need to model your specific numbers.

How to Use This Calculator

  1. Enter your total federal student loan balance.
  2. Set the weighted average interest rate across your loans.
  3. Enter your current annual gross income.
  4. Enter your family size (affects discretionary income calculation).
  5. Review the comparison table showing each plan's payment, payoff time, and total cost.
  6. Check the forgiveness column to see if any balance is forgiven under income-driven plans.

Formula

Standard: M = standard amortization over 120 months. Graduated: starts at 60% of standard, increases every 2 years. Income-Driven: Payment = 10–15% of discretionary income (AGI − 150% of poverty line). Forgiveness: remaining balance after 20–25 years of payments.

Example Calculation

Result: Standard: $555/mo (10 yrs, $66.6K) — SAVE: $188/mo (25 yrs, $56.4K + $18K forgiven)

The standard plan costs $555/month for 10 years ($66,612 total). The SAVE plan (10% of discretionary income) starts at ~$188/month, totaling ~$56,400 over 25 years with roughly $18,000 forgiven. The income-driven plan costs less total because a significant balance is forgiven — but you pay for 15 more years.

Tips & Best Practices

Understanding the Plans

The Standard Plan is simple: fixed payments over 10 years. You pay the least total interest but have the highest monthly payment. The Graduated Plan starts lower and increases every two years, still within a 10-year window — good for early-career borrowers expecting salary growth.

Income-Driven Deep Dive

Income-driven plans calculate your payment based on a percentage of discretionary income. If your income is low enough, your payment can be $0. Unpaid interest may be subsidized (under SAVE) or capitalized (under older plans). The forgiveness at the end means you might pay significantly less than the original balance — or significantly more if your income grows quickly.

Making the Decision

Choose the standard plan if you can afford it and want to minimize costs. Choose an income-driven plan if the standard payment would strain your budget, if you qualify for PSLF, or if your balance is very high relative to your income. Model both scenarios with this calculator before deciding.

Frequently Asked Questions

What are the federal repayment plan options?

Standard (fixed payments over 10 years), Graduated (lower payments that increase every 2 years over 10 years), Extended (up to 25 years with lower payments), and Income-Driven plans (IBR, PAYE, SAVE/REPAYE, ICR) that cap payments based on income with forgiveness after 20–25 years. The right plan depends on your income, loan balance, and career trajectory, so comparing total costs across all options is essential.

What is discretionary income?

For income-driven repayment, discretionary income is your adjusted gross income (AGI) minus 150% of the federal poverty guideline for your family size and state. Income-driven payments are typically 10–15% of this amount, divided by 12 for the monthly payment.

Which income-driven plan is best?

The SAVE plan generally offers the lowest payments for most borrowers, especially those with undergraduate-only debt. PAYE is good for post-2007 borrowers with high debt relative to income. IBR is the fallback option for older loans. ICR is primarily used for Parent PLUS loan consolidation.

What happens with forgiveness?

After making qualifying payments for 20 years (undergraduate) or 25 years (graduate), any remaining balance is forgiven. Under PSLF, forgiveness comes after just 10 years of payments while working full-time for a government or nonprofit employer. PSLF forgiveness is tax-free; standard forgiveness may be taxable.

Can I switch repayment plans?

Yes. You can switch plans at any time by contacting your loan servicer. However, switching from an income-driven plan may capitalize any accrued interest, increasing your balance. Time spent on one income-driven plan counts toward forgiveness if you switch to another income-driven plan.

Is graduate school debt treated differently?

Yes. Graduate borrowers typically have higher balances and different plan eligibility. Under the SAVE plan, graduate borrowers pay 20% of discretionary income (vs 10% for undergrad). Forgiveness comes after 25 years instead of 20 for graduate-only debt.

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