Student Loan IDR Engine
Estimate SAVE, IBR, and PAYE income-driven repayment plan payments using federal poverty guidelines, and project forgiveness timing and total cost.
Forgiveness & Total Cost Projection
SAVE includes an interest subsidy for qualifying payments; IBR and PAYE accrue unpaid interest. Forgiveness after 20/25 years may be treated as taxable income.
Copy the full IDR summary to clipboard for your records or servicer call.
Professional Insights & Guide
Learn critical professional use cases, dynamic step-by-step instructions, and diagnostic failure point resolutions.
How Income-Driven Repayment Works
Every IDR plan caps your payment as a percentage of discretionary income. Discretionary income is your adjusted gross income (AGI) minus a protected amount based on the federal poverty guideline for your family size and state. SAVE protects 225% of the poverty line, while IBR and PAYE protect 150%. SAVE and PAYE charge 10% of discretionary income; IBR charges 15% for most borrowers. Payments are recertified annually, and any balance remaining after 20 (SAVE, PAYE) or 25 (IBR) years of qualifying payments is forgiven.
Troubleshooting & Edge-Case Failure Points
- Zero-dollar payments: If AGI falls below the protected exemption, your payment can be $0 and still count toward forgiveness. Keep recertifying every year.
- Interest capitalization: On IBR and PAYE, unpaid interest can capitalize when income rises or plan changes. SAVE subsidizes unpaid interest instead.
- Taxable forgiveness: The remaining balance discharged at the end of an IDR term is generally taxable as income, unless a current student-loan debt-relief provision changes that.
- Family size definition: Include a spouse and dependents who receive more than half their support from you to maximize the exemption.
Detailed Step-by-Step Instructions
- Enter your total outstanding federal loan balance and current interest rate. Your servicer lists both on your monthly statement.
- Set your standard repayment term (10 years is typical) to generate a reference payment for comparison.
- Enter your adjusted gross income from your most recent federal tax return and your household family size.
- Select SAVE, IBR, or PAYE. The engine applies the correct poverty multiplier, payment percentage, and 20 or 25-year forgiveness term.
- Review discretionary income, your monthly payment, standard-payment reference, total paid, and any forgiven balance projected at forgiveness.
Informative Guides & Helper Articles
How to Calculate Your IDR Payment
Top professional tips and industry standards for accurately estimating your income-driven payment and maximizing savings.
Read Article →Student Loan Consolidation vs Refinancing
Learn how to identify, debug, and easily fix the most common mistakes when comparing consolidation and refinancing.
Read Article →Student Loan Forgiveness Programs
Discover highly effective strategies and program requirements to qualify for student loan forgiveness.
Read Article →Public Service Loan Forgiveness (PSLF) Guide
Explore emerging trends and requirements for Public Service Loan Forgiveness and how they reshape IDR planning.
Read Article →How to Use the Student Loan IDR Calculator
- Enter your adjusted gross income (AGI) — from line 11 of your tax return, or your pay stub math if your income changed.
- Enter your family size and state — the poverty-line multiplier (150%) depends on both.
- Add your total federal loan balance — to see whether forgiveness at year 20–25 beats standard payoff.
- Compare plans: estimated monthly payment under income-driven formulas vs. the standard 10-year plan.
Private loans are not eligible for IDR — this tool models federal Direct loans only.
How the Math Works
Income-driven plans set your payment as a percentage of discretionary income:
Payment = 5–10% × discretionary income ÷ 12
Worked example ($50,000 AGI, single, continental US): the 2026 poverty line for a family of one is about $15,060, so 150% is $22,590. Discretionary income = $50,000 − $22,590 = $27,410. At 10% (SAVE plan) that's $2,741/year ≈ $228/month; at 5% (for original-principal balances under $12k) it's $114/month. If that payment is below accrued interest, subsidized-interest subsidies on some plans stop the balance from growing — the "negative amortization" protection. Any remaining balance is forgiven after 20–25 years of qualifying payments (10 for PSLF).
Income-Driven Repayment FAQ
Which IDR plan gives the lowest payment?
For most borrowers with modest balances it is SAVE at 5%-10% of discretionary income with an interest subsidy; for higher incomes relative to debt, PAYE/IBR caps based on 10-15% may differ. The calculator compares them side by side for your numbers.
Does IDR forgive the rest of my loan?
Yes - remaining balances are forgiven after 20 or 25 years of qualifying payments (10 years under Public Service Loan Forgiveness). Forgiven amounts may be taxable income under current rules outside PSLF.
What counts as income for IDR?
Adjusted gross income from your latest tax return, or alternative documentation (pay stubs) if income dropped. Recertify annually - payments reset to your current income.
Do parent PLUS loans qualify?
Only via the limited Income-Contingent Repayment route after consolidation. Most IDR plans exclude parent PLUS directly.
What if my income is $0 or very low?
Payment can be as low as $0/month, and those $0 payments still count toward forgiveness - a critical protection during unemployment or study.