How This Student Loan Calculator Works
Enter your federal or private student loan balance, interest rate, and repayment term. The calculator computes your fixed monthly payment using the standard amortization formula — the same math used by every major lender and the Federal Student Aid Repayment Calculator.
Add an extra monthly payment to see how much interest you save and how quickly you pay off the loan. The year-by-year schedule shows your remaining balance and cumulative interest at each milestone.
Expand the "Compare Income-Driven Repayment Plans" section to enter your annual income and see how Standard, Extended, Graduated, SAVE, IBR, PAYE, ICR, and RAP plans stack up against each other.
Federal Student Loan Repayment Plans Explained
The U.S. Department of Education offers several federal repayment plans. Here's what each one does:
Standard Repayment (10-Year)
Fixed monthly payments for 10 years. You pay the least total interest of any plan. This is the default if you don't choose another plan.
Extended Repayment (25-Year)
Lower monthly payments spread over 25 years. Available if you owe $30,000+ in federal loans. You pay significantly more total interest.
Graduated Repayment (10-Year)
Payments start low and increase every 2 years. Same 10-year timeline as Standard, but the graduated approach means more total interest.
SAVE Plan (Income-Driven)
Payments based on income and family size. Borrowers earning below 225% of the federal poverty line pay $0/month. Forgiveness after 20-25 years. Note: SAVE has faced legal challenges — check studentaid.gov for current status.
IBR, PAYE, ICR
Other income-driven plans with varying payment percentages (10-20% of discretionary income) and forgiveness timelines (20-25 years). Each has specific eligibility requirements.
RAP Plan (New — July 2026)
The Repayment Assistance Plan uses a sliding scale based on income with wider income bands. 10% of discretionary income with forgiveness after 30 years. Designed to be more accessible than previous IDR plans.
Standard vs Income-Driven: Which Should You Choose?
The answer depends on your income, loan balance, and career goals. Here's the honest tradeoff:
Choose Standard If...
- You can afford the fixed monthly payment
- You want to pay the least total interest
- You don't plan to pursue PSLF
- Your income is stable and sufficient
Choose Income-Driven If...
- Your balance is high relative to income
- You work in public service (PSLF eligible)
- Your income is variable or low
- You want lower monthly payments now
Key insight: Income-driven plans lower your monthly payment but usually increase total interest paid. The main advantage is forgiveness — after 20-30 years of qualifying payments, any remaining balance is forgiven. This is especially valuable for borrowers with very high debt-to-income ratios or those pursuing Public Service Loan Forgiveness (PSLF).
The Student Loan Payment Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1]
M = Monthly payment · P = Principal (loan balance) · r = Monthly interest rate (APR ÷ 12) · n = Total number of payments (years × 12)
This is the standard amortization formula used by the CFPB and every major lender.
For a $35,000 loan at 5.5% over 10 years: M = $35,000 × [0.00458 × (1.00458)^120] / [(1.00458)^120 − 1] = $379.36/month. Total paid: $45,523. Total interest: $10,523.
Worked Example — $35,000 at 5.5%
Let's compare what happens with different strategies on a typical federal student loan:
| Scenario | Monthly Payment | Time to Payoff | Total Interest | Total Paid |
|---|---|---|---|---|
| Standard (10yr) | $379 | 10 years | $10,523 | $45,523 |
| + $100/month extra | $479 | 7 years 7 months | $7,976 | $42,976 |
| + $200/month extra | $579 | 6 years 2 months | $6,250 | $41,250 |
| Extended (25yr) | $217 | 25 years | $30,100 | $65,100 |
Key takeaway: Adding just $100/month extra saves $2,547 in interest and shortens repayment by 2 years 5 months. The extended plan cuts your monthly payment in half but costs $19,577 more in interest.
Student Loan Forgiveness Programs
Federal student loan borrowers may qualify for forgiveness through several programs. None apply to private loans.
Public Service Loan Forgiveness (PSLF)
Forgives remaining balance after 120 qualifying payments (10 years) while working full-time for a government or qualifying non-profit employer. Must be on an income-driven repayment plan. Learn more at StudentAid.gov.
Income-Driven Repayment Forgiveness
After 20-30 years of qualifying payments on IDR plans (SAVE, IBR, PAYE, ICR, RAP), any remaining balance is forgiven. The forgiven amount may be taxable as income.
Teacher Loan Forgiveness
Up to $17,500 in forgiveness for highly qualified teachers who teach in low-income schools for 5 consecutive years. Applies to Direct Subsidized and Unsubsidized Loans.
Borrower Defense to Repayment
Full or partial discharge if your school misled you or engaged in misconduct related to your loans or the educational services provided.
Student Loan Repayment Tips
Enroll in autopay
Most federal and private lenders offer a 0.25% interest rate reduction for autopay enrollment. That's real money saved every month with zero effort.
Target the highest-rate loan first
If you have multiple loans, direct extra payments toward the highest interest rate first (avalanche method). This minimizes total interest. Use the Debt Payoff Calculator to model this.
Certify employment annually for PSLF
If you're pursuing PSLF, submit an Employment Certification Form every year — not just at the end. This catches errors early and ensures your payment count is accurate.
Avoid capitalization traps
Unpaid interest on federal loans capitalizes (gets added to your balance) at certain events — like when you leave IDR or consolidate. Pay interest before it capitalizes to keep your balance from growing.
Refinance only if you won't need federal protections
Refinancing to a private loan can lower your rate, but you lose access to IDR plans, forbearance, deferment, and forgiveness programs. Only refinance federal loans if you have stable income and don't need these safety nets.
Disclaimer
This calculator provides estimates based on standard amortization formulas and publicly available IDR plan parameters. Actual payments may differ based on your filing status, state of residence, loan type, servicer-specific rules, and annual income recertification.
This tool is for educational and planning purposes only — not financial advice. For official repayment plan information, visit StudentAid.gov or contact your loan servicer. For personalized guidance, consult a certified credit counselor.