Student Loan Repayment Plan Comparison Calculator

Compare Payment Plans: This calculator compares the proposed RAP (Repayment Assistance Plan) with existing IBR (Income-Based Repayment) and SAVE (Saving on a Valuable Education) plans. Older payment methods are only included for historical reference, by 2028 you will either need to pay the full amount each month or move to RAP

Past Payment History

Account for Past Payments: Enter your payment history to calculate remaining time until forgiveness under each plan. This is especially important for PSLF (Public Service Loan Forgiveness) tracking.
Enter the number of qualifying payments you've already made
Enter the total dollar amount you've paid so far
Select your current repayment plan

PSLF requires 120 qualifying payments (10 years) while working for a qualifying employer. Check this if you're employed by a government organization or qualifying non-profit.

Loan Parameters

AGI Calculator Help: Your AGI is typically your gross salary minus:
  • 401(k) or traditional IRA contributions
  • Health insurance premiums (if pre-tax)
  • HSA/FSA contributions
  • Student loan interest paid (up to $2,500)
For a more accurate AGI, check line 11 of your most recent tax return (Form 1040).

Personal Factors

Old IBR (default): 15% of discretionary income, 25-year forgiveness (for loans before July 1, 2014)
New IBR: 10% of discretionary income, 20-year forgiveness (for loans on/after July 1, 2014)

Plan Comparison Summary

Repayment Plan First Month Payment Total Paid Total Interest Forgiven Amount Tax on Forgiveness Total Cost Years to Forgiveness Add to Budget
Standard (10-year) - - - $0 $0 - 10
RAP (Proposed) - - - - - - -
IBR (Current) - - - - - - -
SAVE - - - - - - -
Important Note: SAVE plan is currently suspended pending legal challenges. IBR version can be selected above (Old IBR: 15%, 25 years vs New IBR: 10%, 20 years). RAP includes interest subsidy that waives unpaid interest and principal reduction match that ensures at least $50/month principal reduction.

Detailed RAP Analysis

Repayment Rate: 6%

Estimated Monthly Payment (Year 1): $340

Amount Previously Paid: $0

Total Amount Paid: $162,420

Total Interest Paid: $0

Remaining Balance at Forgiveness: $0

Estimated Tax on Forgiven Amount: $0

Total Cost (Payments + Tax): $0

Payments Until Forgiveness: 360

Show in Charts:

Detailed Payment Schedule

Year Adjusted Income Standard RAP Payment IBR Payment SAVE Payment Standard Balance RAP Balance IBR Balance SAVE Balance

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Glossary

Standard Repayment Plan
The default federal repayment plan with fixed monthly payments calculated to pay off your loan in 10 years. Payments are the same each month regardless of income. No forgiveness, but lowest total interest cost.
RAP (Repayment Assistance Plan - Proposed)
A proposed income-driven repayment plan where payments range from 0-10% of AGI based on income brackets, with a $50/month deduction per dependent child. Features 30-year forgiveness timeline with interest subsidy that waives unpaid interest and principal reduction match that ensures at least $50/month principal reduction.
IBR (Income-Based Repayment)
Federal plan with two versions: Old IBR (Pre-2014): 15% of discretionary income, 25-year forgiveness for loans before July 1, 2014. New IBR (2014): 10% of discretionary income, 20-year forgiveness for loans on/after July 1, 2014. Both cap payments at the 10-year Standard payment amount.
SAVE (Saving on a Valuable Education)
Newest federal plan with 5% of discretionary income for undergraduate loans (10% for graduate). Uses 225% poverty guideline threshold. Currently suspended due to legal challenges. Features 100% interest subsidy.
PSLF (Public Service Loan Forgiveness)
Program that forgives federal student loans after 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer. Forgiveness is tax-free.
Discretionary Income
For IBR/SAVE: Your AGI minus a percentage of the federal poverty guideline based on family size. This protects a basic living amount from loan payments.
AGI (Adjusted Gross Income)
Your total income minus specific deductions. Used to calculate payments under all income-driven plans.
Interest Subsidy
Government forgiveness of unpaid interest to prevent balance growth. SAVE offers 100% subsidy, RAP proposes similar protection with additional principal reduction matching.
Principal Reduction Match
RAP feature where the government ensures at least $50/month in principal reduction. If the borrower's payment doesn't achieve this, the government chips in the difference. This helps borrowers make steady progress on their loan balance.
Qualifying Payments
For forgiveness programs, payments that count toward the required number. Must be made on-time, for the full amount due, under a qualifying repayment plan.

Income & Expense Tracker

Track Your Finances: Monitor your income and expenses to better understand your financial situation and how it affects your student loan repayment options.

Income Sources

Expenses

Budget vs Actual Summary

Financial Summary

Total Monthly Income

$0.00

Total Monthly Expenses

$0.00

Net Monthly Income

$0.00

Savings Rate

0%

Financial Analysis

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Resources & Help

Welcome to the Student Loan Calculator: This section provides helpful resources, tips, and information to help you make informed decisions about your student loan repayment.

Quick Tips

  • Know Your AGI: Your Adjusted Gross Income is key to calculating income-driven repayment plans. Check line 11 of your Form 1040.
  • Consider PSLF: If you work for a government or qualifying non-profit, Public Service Loan Forgiveness can forgive your loans after 10 years of qualifying payments.
  • Track Your Payments: Keep detailed records of all your loan payments, especially if you're pursuing forgiveness programs.
  • Review Annually: Recalculate your payments each year as your income and family size may change.
  • Understand Tax Implications: Forgiven amounts (except PSLF) are typically considered taxable income.

Important Links

Federal Student Aid: studentaid.gov - Official government resource for student loans

Loan Simulator: studentaid.gov/loan-simulator - Compare repayment plans

PSLF Help Tool: studentaid.gov/pslf - Public Service Loan Forgiveness information

Income-Driven Repayment: Income-Driven Repayment Plans - Learn about IDR options

Understanding Your Results

Total Cost: This includes all payments you'll make plus any tax on forgiven amounts. Lower is generally better, but consider your monthly cash flow.

Years to Forgiveness: How long until your remaining balance is forgiven under the plan. Shorter means less total interest, but may mean higher monthly payments.

Monthly Payment: Your first-year payment amount. This may increase over time with income growth.

Forgiven Amount: The balance that will be forgiven at the end of the repayment period. Remember this may be taxable.

Frequently Asked Questions

Q: Which plan is best for me?
A: It depends on your income, family size, and career goals. Use this calculator to compare total costs and monthly payments. Consider both short-term affordability and long-term total cost.

Q: Can I switch plans?
A: Yes, you can generally switch between income-driven plans at any time. Contact your loan servicer to change plans.

Q: What if my income changes?
A: You should recertify your income annually for income-driven plans. If your income decreases significantly, you can recertify early to lower your payment.

Q: Are these calculations exact?
A: These are estimates based on current rules and your inputs. Actual payments may vary based on your specific loan details and servicer calculations.

About This Calculator

This calculator is designed to help you understand and compare different student loan repayment options. All calculations are performed locally in your browser - your data never leaves your device.

Note: This tool provides estimates only. Always verify calculations with your loan servicer and consult with a financial advisor for personalized advice.

Student Loan News

Stay Updated: This section provides the latest news and updates on student loans, repayment plans, and policy changes that may affect your repayment strategy.

Major Policy Changes

1. "One Big Beautiful Bill" - Major Repayment Plan Overhaul (July 4, 2025)

The federal student loan system has been significantly restructured with the enactment of new legislation. Key changes include:

  • Two New Repayment Options:
    • Standard Plan: Fixed monthly payments over 10 to 25 years, depending on loan amount
    • Repayment Assistance Plan (RAP): Income-based payments ranging from 1% to 10% of adjusted gross income, with loan forgiveness after 30 years
  • Phase-Out of Existing Plans: Current income-driven repayment plans (IBR, PAYE, REPAYE/SAVE) will be phased out
  • Transition Deadline: Borrowers must transition to the new system by July 1, 2028
  • Borrowing Caps: New limits introduced for graduate and professional students
  • Grad PLUS Elimination: The Grad PLUS program is slated for elimination

Source: Kiplinger - Trump Targets Student Loan Forgiveness | Times Leader Online

2. SAVE Plan Legal Challenges and Suspension

The Saving on a Valuable Education (SAVE) plan, which aimed to reduce or eliminate monthly payments for over 20 million borrowers, has faced significant legal challenges:

  • Federal court injunction blocked implementation of the SAVE plan
  • Department of Education paused processing applications for income-driven repayment plans for three months
  • Borrowers are advised to explore alternative repayment options during this period

Source: CBS News - New Student Loan Repayment Plans | Washington Post - Student Loan Repayment Options

3. Public Service Loan Forgiveness (PSLF) Program Changes

Significant changes to the PSLF program have been proposed, facing legal challenges:

  • New rule set to take effect in July 2026 allows the Department of Education to disqualify nonprofit and government employers if deemed to have a "substantial illegal purpose"
  • Several Democratic-led states, cities, and nonprofit organizations have filed lawsuits challenging the rule
  • Critics argue this could exclude organizations supporting immigrants, gender-affirming care, and diversity efforts
  • Potential impact on public service employment and loan forgiveness eligibility

Source: AP News - States Challenge PSLF Rule | Reuters - US States Sue Over PSLF Rule

Administrative Updates

4. Loan Forgiveness Resumption After Lawsuit (October 2024)

Following a lawsuit by the American Federation of Teachers, the administration has agreed to resume student loan forgiveness:

  • Approximately 2.5 million borrowers enrolled in specific federal repayment programs will have forgiveness processed
  • Affects eligible participants in income-driven repayment plans, including Pay As You Earn (PAYE) and PSLF
  • Borrowers who have overpaid beyond forgiveness requirements will receive reimbursements
  • Debt forgiven before December 31 will not be taxed due to recent tax law changes
  • Administration will submit biannual progress reports to the court

Source: AP News - Trump Administration Pledges to Speed Loan Forgiveness | Time - Student Loan Forgiveness Resumption

5. Income-Based Repayment (IBR) Plan Forgiveness Pause

The Department of Education has temporarily paused forgiveness for borrowers enrolled in the Income-Based Repayment (IBR) plan:

  • Affects approximately 2 million borrowers
  • Decision is in response to ongoing court injunctions related to previous student loan forgiveness attempts
  • Department has not provided a specific timeframe for when forgiveness will resume

Source: CBS News - IBR Forgiveness Pause

6. Repayment Information Errors Affecting Borrowers

Significant errors in repayment information have been reported:

  • Over 300,000 borrowers received incorrect repayment information as payments resumed
  • Department of Education has directed loan servicers to notify affected individuals
  • Affected borrowers placed into administrative forbearance until accurate payment amounts are determined

Source: CBS News - Student Loan Repayment Wrong Information

What This Means for You

Stay Informed: These changes significantly impact repayment options and forgiveness eligibility. It's crucial to:

  • Monitor updates from the Department of Education and your loan servicer
  • Understand the timeline for transitioning to new repayment plans (deadline: July 1, 2028)
  • Verify your repayment information if you received incorrect notices
  • Consider how PSLF changes may affect your eligibility if you work in public service
  • Review your current repayment plan and explore alternatives if needed

Important: Always verify information with official sources and your loan servicer. This calculator reflects current understanding of proposed plans but may need updates as policies are finalized.