Federal student loans have 8 repayment plan options — each with dramatically different monthly payments and total costs. Private loans have fewer options but similar payment math. This calculator handles both, shows your payment under all major plans, and helps you identify which plan minimizes total cost for your specific income and loan balance.
Federal student loans offer 8 distinct repayment plan options
Public Service Loan Forgiveness — 10 years of payments, remainder forgiven
Income-Driven Repayment caps payments at 5%–20% of discretionary income
All federal repayment plan changes are free — no refinancing needed
| Feature | Federal Loans | Private Loans |
|---|---|---|
| Repayment plans | 8 options including IDR | Standard only (varies by lender) |
| Income-based payments | ✓ Available | ✗ Not available |
| Loan forgiveness | ✓ PSLF, IDR forgiveness | ✗ Not available |
| Deferment / forbearance | Generous options | Limited, lender-dependent |
| Interest rates | Fixed, set by Congress | Variable or fixed, credit-based |
| Death discharge | ✓ Automatic | Varies by lender |
The default for federal loans — fixed payments over 10 years. Highest monthly payment but lowest total interest paid. Best if you can afford the payment and want to minimize lifetime cost.
Payments start low and increase every 2 years. Designed for borrowers expecting income growth. Same 10-year term as Standard but slightly more total interest due to slower early principal reduction.
SAVE (formerly REPAYE), PAYE, IBR, and ICR all cap monthly payments at a percentage of your discretionary income — ranging from 5% to 20% depending on the plan. Remaining balance is forgiven after 10–25 years depending on the plan. Best for borrowers with high debt relative to income.
If you work for a government or qualifying nonprofit employer, make 120 qualifying payments (10 years) on an IDR plan, and the entire remaining balance is forgiven tax-free. This can save $50,000–$200,000+ for high-balance borrowers in qualifying careers.
If your loan balance exceeds your annual income, IDR plans almost always result in lower lifetime cost due to forgiveness. If your loan balance is less than your annual income, the Standard Plan typically minimizes total interest. Use the calculator above to see your exact numbers.
The Standard Repayment Plan spreads federal student loan payments over 10 years (120 months) with fixed equal payments. It has the highest monthly payment of any plan but the lowest total interest paid. It's the default plan for Direct Loans and FFEL loans.
Income-Driven Repayment (IDR) plans cap your monthly federal student loan payment at a percentage of your discretionary income — typically 5%–20% depending on the specific plan. Remaining balances are forgiven after 10–25 years. Best for borrowers with high debt relative to their income.
Public Service Loan Forgiveness forgives remaining federal student loan balances after 120 qualifying monthly payments (10 years) while working full-time for a government or qualifying nonprofit employer. It's tax-free forgiveness — potentially worth $50,000–$200,000+ for high-balance borrowers in public service careers.
Refinancing federal loans into private loans eliminates all federal protections — IDR plans, PSLF eligibility, and federal deferment options. Only refinance federal loans if you have stable income, don't need federal protections, and can secure a meaningfully lower rate. Private loan refinancing rarely has these downsides.
Interest accrues daily on your outstanding balance based on your annual rate divided by 365. On a $35,000 loan at 6.54%, daily interest = $35,000 × 6.54% ÷ 365 = $6.27/day. Monthly interest = approximately $188. If your monthly payment is less than $188, you have negative amortization — your balance grows even while making payments.
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⚠ Disclaimer: Federal student loan repayment rules, IDR plan formulas, and forgiveness terms change periodically. Verify all current plan details at studentaid.gov before making decisions. This calculator provides estimates only. Not financial or legal advice. See our Disclaimer and Privacy Policy.