Student Loan Repayment Plan Comparator
A lower payment now usually means more years and more total interest
Student Loan Repayment Plan Comparator
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Standard 10-year fixed payment
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Income-driven payment estimate
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roughly 10% of discretionary income, monthly
Total paid over the standard term
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Income-driven plans trade a lower payment for a longer horizon
A payment based on discretionary income (typically capped around 10% of income above a poverty-line-based exemption) can be dramatically lower month to month, but usually stretches repayment to 20-25 years and can mean total interest paid over the life of the loan exceeds the standard 10-year plan's total.
This area changed substantially in 2025-2026 — verify the current plan names
Older income-driven plans (SAVE, PAYE, IBR) were significantly restructured by 2025 legislation, with a new unified repayment structure phased in for federal loans — the specific plan name, percentage, and forgiveness timeline you're offered may differ from older articles you've read. Check studentaid.gov for what's actually available to you today.
Forgiven balances can create a tax bill
Depending on current law at the time your balance is forgiven under an income-driven plan, the forgiven amount may or may not be taxable as income — this has changed by legislation before and could again, so don't assume either outcome without checking the rules in effect when your forgiveness date arrives.
Standard plan uses a fixed 10-year amortization at your stated rate. Income-driven estimate uses a simplified approximation (roughly 10% of income above a poverty-line-based exemption scaled by family size, a commonly used general structure across historical income-driven plans) rather than any one specific current plan's exact formula — federal student loan repayment plans were substantially restructured by 2025-2026 legislation, with plan names, percentages, and forgiveness timelines that may differ from what's modeled here. Always verify your actual available plans, payment amount, and forgiveness timeline directly at studentaid.gov before choosing a plan. Not financial advice.