What is the best income-driven repayment plan?

The SAVE plan (formerly REPAYE) generally offers the lowest payments for most borrowers, capping payments at 5% of discretionary income for undergrad loans and providing forgiveness after 20-25 years.

How do income-driven payments change with salary increases?

Monthly payments recalculate annually based on adjusted gross income. A $10,000 raise typically increases monthly payments by $50-$100 under most IDR plans.

Does IDR forgiveness leave a tax bomb?

IDR forgiveness after 20-25 years may be treated as taxable income at the federal level. Consult a tax professional when your forgiveness date approaches to plan for potential tax liability.

Income-Driven Repayment Plan Comparison

Formula Definitions

The Income-Driven Repayment Plan Comparison works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the IDR Comparison.

The core formula used by this calculator is:

Result = f(inputs, settings)

Each variable in the formula has a specific meaning:

inputs — Values entered into the IDR Comparison.
settings — Options, units, or parameters that adjust how the calculation is performed.
Result — Computed output for the chosen inputs and settings.

How to Use This Calculator

Enter the required values. Enter the required values into the Income-Driven Repayment Plan Comparison input fields.

Adjust settings. Adjust any settings, select applicable options, or choose units as needed.

Calculate the result. Press Calculate to compute the result using the underlying formula.

Interpret the output. Review and interpret your result using the provided context, reference ranges, or explanatory notes.

Glossary and Definitions

Input

A value entered into the calculator to be processed.

Output

The computed result returned by the calculator for the given inputs.

Setting

An option that adjusts how the calculation is performed, such as unit selection or mode.

Income-driven repayment

A key concept referenced by the IDR Comparison: Compare SAVE, PAYE, REPAYE, IBR, and ICR income-driven repayment plans to find the lowest monthly payment and total cost for your income and debt.

SAVE plan

A key concept referenced by the IDR Comparison: Compare SAVE, PAYE, REPAYE, IBR, and ICR income-driven repayment plans to find the lowest monthly payment and total cost for your income and debt.

IDR comparison

A key concept referenced by the IDR Comparison: Compare SAVE, PAYE, REPAYE, IBR, and ICR income-driven repayment plans to find the lowest monthly payment and total cost for your income and debt.

Student loan repayment plan

A key concept referenced by the IDR Comparison: Compare SAVE, PAYE, REPAYE, IBR, and ICR income-driven repayment plans to find the lowest monthly payment and total cost for your income and debt.

Income-Driven Repayment Plan Comparison

Formula Definitions

How to Use This Calculator

Glossary and Definitions

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Frequently Asked Questions