Student Loan Calculator

About the Student Loan Calculator

The US federal student loan calculator computes your monthly payments and total repayment cost across all four major federal repayment plans — Standard 10-Year, Graduated, SAVE (Saving on a Valuable Education), and Public Service Loan Forgiveness — so you can make an informed decision about which plan makes the most financial sense for your situation. Student loans are the second largest consumer debt category in the United States after mortgages, with more than 43 million Americans collectively holding over $1.7 trillion in federal student loan debt. The average borrower graduates with approximately $30,000 in federal loans, but graduate and professional school borrowers frequently exceed $100,000. The repayment plan you choose has an enormous impact on your lifetime cost of borrowing — potentially the difference between paying $15,000 and $50,000 in interest on the same $35,000 loan balance. The Standard 10-Year Plan is the default: fixed monthly payments that clear the balance in exactly 120 months. It minimises total interest paid but requires the highest monthly payment. It is the best plan for borrowers who can comfortably afford the standard payment and do not qualify for or need income-driven forgiveness. The Graduated Plan also repays over 10 years but starts with lower payments (approximately 60% of the standard amount) that increase every two years. Total interest paid is higher than standard because you pay less principal in the early years while interest accrues. The SAVE Plan (Saving on a Valuable Education), introduced in 2023, is the most borrower-friendly income-driven repayment option available. It sets payments at 5% of discretionary income for undergraduate loans (10% for graduate, proportionally blended for mixed), compared to 10% under all previous IDR plans. Critically, SAVE provides an unprecedented interest subsidy: if your payment does not cover the monthly interest, the government covers the difference — preventing negative amortisation where balances grow despite making payments. After 20 years of qualifying payments, any remaining balance is forgiven (10 years for borrowers with $12,000 or less in original loans). Public Service Loan Forgiveness (PSLF) provides tax-free forgiveness after just 120 qualifying monthly payments (10 years) while working full-time for a qualifying public service employer — government agencies, non-profit organisations, and certain other entities. Unlike the 20-year IDR forgiveness, PSLF forgiven amounts are completely tax-free under current law. For borrowers targeting PSLF, the optimal strategy is to maximise forgiveness by making the lowest possible payments — which means enrolling in SAVE or another IDR plan, not the Standard Plan.

How It Works

Standard payment formula: Payment = Balance × [r(1+r)^n / ((1+r)^n − 1)] where r = monthly rate, n = 120 months. SAVE payment: Monthly = max(0, (AnnualIncome − 225% × PovertyGuideline) × 5%) / 12. SAVE interest subsidy: if Payment < Monthly Interest, government covers the gap — balance does not grow. IDR forgiveness: remaining balance forgiven after 240 months (20 years). PSLF: remaining balance forgiven tax-free after 120 payments in qualifying employment. Example: $35,000 balance, 6.54% rate, $55,000 income. Standard: $394/month, $47,280 total, $12,280 interest. SAVE: $121/month (5% of discretionary above $35,213 threshold), forgiveness likely at year 20. PSLF: same $121/month, forgiveness at year 10 — tax-free.

Tips & Best Practices

• ✓Enroll in SAVE immediately if you are on any older IDR plan (REPAYE, PAYE, IBR). SAVE has lower payments (5% vs 10% for undergrad) and the interest subsidy prevents balance growth — there is almost no reason to remain on older IDR plans.
• ✓PSLF eligibility check: use the PSLF Help Tool at StudentAid.gov to submit Employment Certification Forms annually. Many borrowers discover eligibility errors years later when it is too late to correct them. Certify every year, not just when you apply for forgiveness.
• ✓The forgiven amount under 20-year IDR forgiveness is currently taxable as income in the year of forgiveness. Plan for this tax bill — set aside the equivalent of your marginal tax rate times the projected forgiven amount over the repayment period. PSLF forgiveness is tax-free.
• ✓Refinancing to private loans permanently eliminates access to IDR plans, PSLF, and federal forbearance. Only refinance if you have high-rate Graduate PLUS loans, stable high income, and zero PSLF eligibility — and even then, model the comparison carefully.
• ✓Graduate PLUS loans (7.05%+ rate in 2025) are the priority target for any extra payments. Subsidised undergraduate loans at 6.53% may be worth keeping on IDR given the interest subsidy. Model the break-even carefully before making extra payments.
• ✓Income recertification: IDR payments are recalculated annually based on your latest tax return. If your income dropped significantly, recertify immediately rather than waiting for the annual deadline — you can lower payments mid-year.
• ✓Parent PLUS loans are not eligible for SAVE or most IDR plans directly. Parents can consolidate into a Direct Consolidation Loan and then access the Income-Contingent Repayment (ICR) plan — the only IDR available to PLUS loan borrowers. PSLF is available to parents on ICR.
• ✓The American Rescue Plan Act made student loan forgiveness tax-free at the federal level through 2025. Some states may still treat forgiven amounts as taxable income — check your state tax rules, particularly if you receive IDR forgiveness in the next few years.

Who Uses This Calculator

Recent graduates deciding which repayment plan to enroll in before their grace period ends. Borrowers considering PSLF who work in public service and need to calculate how much forgiveness they qualify for. People evaluating whether to refinance federal loans to private (losing IDR and PSLF eligibility) for a lower interest rate. Graduate school applicants modeling their projected loan balance and repayment burden before enrolling. Married borrowers on income-driven plans understanding how their joint versus separate tax filing status affects their IDR payment. Borrowers who paused payments during forbearance periods calculating their current situation and resumed payment strategy.