FinCompute

Student Loan IDR Calculator

Estimate your monthly student loan payments under Income-Driven Repayment (IDR) plans like SAVE, PAYE, and IBR based on your income, loan type, and family size.

Last updated: July 2026

Loan & Income Details

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Note: the SAVE plan has faced federal court blocks since 2024 and its future is uncertain. Estimates use published SAVE formulas for comparison only — verify current eligibility at studentaid.gov before making decisions.

IDR Monthly Payment

$81.25

Discretionary Income

$19,500.00

Standard 10-Year Payment

$434.11

Plan Guideline Estimates

Federal Poverty Line$15,800
Income Shield Limit$35,550
Formula Breakdown

1. Federal Poverty Line Shield

Threshold = PovertyBase × Multiplier (2.25 for SAVE, 1.50 for others)

2. Discretionary Income

Discretionary = AGI - Threshold

3. Monthly Payment (IDR)

Payment = (Discretionary × Rate) / 12 (Rate = 5% undergrad, 10% grad/others)

Navigating Student Loan Repayment & Forgiveness

Federal and private student loans offer various repayment strategies. Understanding Income-Driven Repayment (IDR) plans like SAVE, PAYE, and IBR helps borrowers optimize monthly cash flow and qualify for loan forgiveness.

How Income-Driven Repayment Operates

IDR plans calculate your monthly payment based on family size and discretionary income rather than total loan balance. Under programs like SAVE, payments are capped at 5% to 10% of discretionary income above 225% of the federal poverty line, with unpaid interest subsidized to prevent balance inflation.

Discretionary Income Calculation

Discretionary Income = Adjusted Gross Income (AGI) - (Poverty Guideline * 2.25)

The required payment under the SAVE plan is calculated as a percentage of this discretionary surplus, ensuring that low-income borrowers may qualify for $0 monthly payments while still making progress toward forgiveness.

Maximizing Student Loan Forgiveness

  • Annual RecertificationRecertify your family size and income annually on studentaid.gov to keep your income-driven payment amounts accurate.
  • Public Service Loan Forgiveness (PSLF)Full-time employees of qualifying 501(c)(3) non-profits and government agencies can receive tax-free forgiveness after 120 qualifying payments.
  • Avoid Voluntary CapitalizationMinimizing plan switches prevents unpaid interest from capitalizing into your principal balance.

Frequently Asked Questions

What is the SAVE plan?

The Saving on a Valuable Education (SAVE) plan is an income-driven repayment (IDR) plan that protects discretionary income up to 225% of the poverty line, lowers payments to 5%-10%, and stops unpaid interest from accumulating.

How is discretionary income calculated for student loans?

Discretionary income is the difference between your Adjusted Gross Income (AGI) and a percentage of the federal poverty guideline for your family size (150% for PAYE/IBR, 225% for SAVE).

How does student loan forgiveness work under IDR plans?

If you pay under an IDR plan for 20 or 25 years (or 10 years under SAVE for low initial balances), any remaining student debt is forgiven.

Which IDR plan is best for me?

For most borrowers, the SAVE plan offers the lowest monthly payment and the best interest subsidy. Borrowers with very high incomes relative to debt may prefer PAYE or IBR due to payment caps.

Can I switch student loan repayment plans at any time?

Yes, you can apply to switch repayment plans for free at studentaid.gov. However, switching plans can sometimes cause unpaid interest to capitalize.

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