How IDR Plans Calculate Your Payment

Income-Driven Repayment plans set your monthly payment as a percentage of your "discretionary income" — what's left after a poverty-line exemption.

• SAVE: 5% of income above 225% of the federal poverty line (FPL). Lowest payments for most borrowers.
• PAYE: 10% of income above 150% of FPL. Capped at standard 10-year payment.
• IBR (new, post-2014): 10% of income above 150% of FPL.
• IBR (old, pre-2014): 15% of income above 150% of FPL.

PSLF — Public Service Loan Forgiveness

If you work full-time for a qualifying employer (federal, state, local government, or 501(c)(3) non-profit), you can have your remaining balance forgiven after 120 qualifying payments (10 years). PSLF forgiveness is currently tax-free at the federal level.

IDR Forgiveness

After your repayment period ends, any remaining balance is forgiven — but the timeline depends on your plan:

• SAVE: 20 years (undergrad loans) or 25 years (any grad loans)
• PAYE: 20 years
• IBR new: 20 years
• IBR old: 25 years

Note: IDR forgiveness (outside PSLF) may be taxable as income in the year it occurs. Consult a tax advisor.

Federal Poverty Line (2024, Contiguous US)

$15,060 for a family of 1, plus $5,380 per additional person. This calculator uses 2024 FPL values.

Important Disclaimers

This calculator provides estimates only. Your actual payment may differ based on income recertification, loan type eligibility, plan availability, and regulatory changes. SAVE plan benefits are subject to ongoing litigation as of 2024-2025. Always verify with your loan servicer and studentaid.gov.