Income-Driven Repayment Calculator

PAYE typically gives the lowest payment for most borrowers - 10% of discretionary income capped at the standard 10-year payment, with 20-year forgiveness. IBR for new borrowers (post-2014) matches PAYE's 10% rate but with a 20-year clock. IBR for older borrowers takes 15% over 25 years. The SAVE plan offered better terms but was struck down by courts in 2024; successor terms remain uncertain in 2026.

Discretionary income = AGI − 150% of Federal Poverty Level for your family size (some plans use 100% or 225%). For 2025 in continental US: 1 person 150% FPL ≈ $23,475; family of 4 ≈ $48,225. If you earn $60,000 AGI as a single filer, discretionary income is ~$36,525, and your IBR payment would be ~$304/month (10% ÷ 12).

Yes - remaining balances are forgiven after 20-25 years of qualifying payments (20 for PAYE/IBR-new; 25 for IBR-old). Forgiven amounts WERE temporarily excluded from taxable income through 2025 under the American Rescue Plan. Without a legislative extension, IDR forgiveness in 2026+ may be taxable as ordinary income - potentially a 6-figure tax bill, requiring planning ("tax bomb" prep).

Filing jointly: both spouses' income counts toward your IDR payment, raising it. Filing separately (MFS): only your income counts, but you lose many tax benefits (student loan interest deduction, Roth contribution limits, child tax credits in some configurations). For PAYE/IBR-new, MFS often saves substantially. Run the numbers both ways every year at tax time - the optimal answer depends on income split and other deductions.