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 percentage of your discretionary income. The main plans are: IBR (10% of discretionary income), PAYE (10%), REPAYE/SAVE (5-10%), and ICR (20%). After 20-25 years of payments, the remaining balance is forgiven. Discretionary income is defined as income above 150-225% of the Federal Poverty Level.
What is the SAVE plan?
The Saving on a Valuable Education (SAVE) plan replaced REPAYE and offers the most generous income-driven terms. It calculates payments at 5% of discretionary income for undergraduate loans (10% for graduate), protects more income by using 225% of FPL as the threshold, and provides earlier forgiveness for small balances. Interest that exceeds your payment is not charged.
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 2025 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.