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Monthly Payment
$380
Total Interest
$10,581
Payoff Period
10 years
What are the income-driven repayment plans?
Income-driven repayment (IDR) plans cap your monthly student loan payment at a share of your income. Older plans include IBR (10-15% of discretionary income), PAYE (10%), and ICR (20%), with forgiveness after 20-25 years of payments. Since 1 July 2026, new federal borrowers can only choose one income-driven plan: the Repayment Assistance Plan (RAP). Borrowers on the blocked SAVE plan must move to another plan, such as IBR or RAP.
What happened to the SAVE plan?
The Saving on a Valuable Education (SAVE) plan was blocked by federal courts and is being wound down. Interest started building again on SAVE loans on 1 August 2025, and borrowers are being moved off the plan. SAVE payment amounts shown here are for comparison only — you cannot stay on SAVE long term, and new borrowers cannot join it.
What is the Repayment Assistance Plan (RAP)?
RAP is the new income-driven plan created by the One Big Beautiful Bill Act. From 1 July 2026 it is the only income-driven option for new federal borrowers. Payments are set at 1% to 10% of your adjusted gross income (the rate rises with income), with a minimum payment of $10 per month. Unpaid interest is waived, and any remaining balance is forgiven after 30 years of payments.
How does Public Service Loan Forgiveness (PSLF) work?
PSLF forgives the remaining balance on Direct Loans after 120 qualifying monthly payments (10 years) while working full-time for a qualifying government or nonprofit employer. You must be on an income-driven repayment plan. The forgiven amount under PSLF is not taxed as income, unlike IDR forgiveness.
When is student loan interest deductible?
You can deduct up to $2,500 in student loan interest paid per year if your modified adjusted gross income is below $80,000 (single) or $165,000 (married filing jointly) for 2025. The deduction phases out above $70,000/$145,000. It is an "above-the-line" deduction, meaning you can claim it even without itemizing.
Note: This calculator provides estimates based on 2025 FPL guidelines and IDR plan formulas. Actual payments may vary based on your loan servicer, income certification, and plan-specific rules. Contact your loan servicer for exact payment amounts.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2026 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Topic 456 — Student Loan Interest Deduction
- IRS Publication 970 — Tax Benefits for Education
- Federal Student Aid — Repayment Plans
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.