Income-Driven Repayment (IDR) Calculator

The main IDR plans currently available are IBR (Income-Based Repayment), PAYE (Pay As You Earn), and ICR (Income-Contingent Repayment). New IBR caps payments at 10% of discretionary income for borrowers who first borrowed after July 1, 2014, while Old IBR uses 15%. PAYE is also capped at 10%, and ICR uses 20% of discretionary income or the fixed 12-year payment — whichever is less. The SAVE plan has been discontinued following a proposed 2025 settlement.

IDR plans base your monthly student loan payment on your income and family size rather than your total loan balance. They calculate a 'discretionary income' figure by subtracting a percentage of the federal poverty guideline for your family size and state from your AGI. A set percentage of that discretionary income becomes your monthly payment. Any remaining balance is forgiven after 20–25 years of qualifying payments.

Discretionary income is the portion of your income used to determine IDR payments. For IBR and PAYE it equals your AGI minus 150% of the federal poverty guideline for your family size and state. For ICR, it equals your AGI minus 100% of the federal poverty guideline. A lower discretionary income results in a lower monthly payment.

You can apply for an IDR plan at StudentAid.gov using the IDR Plan Request form. You'll need your most recent federal tax return or a current income estimate, your FSA ID, and information about your loans. Your loan servicer processes the application and will notify you of your new payment amount, typically within a few weeks.

No. IDR plans are only available for federal student loans. Private student loans are not eligible. If you have private loans, you'll need to contact your private lender directly to discuss alternative repayment options such as refinancing or hardship programs.

You must recertify your income and family size annually to remain on an IDR plan. Your loan servicer will notify you before your recertification deadline. You can recertify at StudentAid.gov by submitting updated income documentation. Missing the recertification deadline can result in your payment temporarily reverting to a higher amount.

The main advantages are lower monthly payments tied to your income, a safety net if your earnings drop, and loan forgiveness after 20–25 years. The downsides include paying more interest over time (since lower payments mean slower principal payoff), the forgiven amount may be taxable as income, and eligibility requirements vary by plan and loan type. A financial advisor or student loan planner can help you weigh these trade-offs.

The SAVE (Saving on a Valuable Education) plan was the successor to the REPAYE plan and offered the most generous terms of any IDR option. However, in December 2025, the U.S. Department of Education announced a proposed settlement agreement that would end the SAVE plan. Borrowers previously enrolled in SAVE should explore IBR, PAYE, or ICR as alternatives using this calculator.