What is the standard student loan repayment plan?

The standard plan is the default federal student loan repayment option. It divides your principal and interest into fixed monthly payments over 10 years (120 payments). This plan typically has the highest monthly payment of the three options, but the lowest total interest cost because you pay off the principal fastest. Most federal Direct Loans are automatically placed on the standard plan unless you choose another option.

How does the graduated repayment plan work?

The graduated plan starts with lower monthly payments (typically about half of the standard payment) and increases them every two years. The loan is still paid off in the same 10-year term, but early payments may not even cover the accruing interest. This plan is best for borrowers who expect their income to grow steadily over time, such as recent graduates in entry-level positions with strong career trajectories.

What is income-driven repayment (IDR)?

Income-driven repayment plans set your monthly payment based on your income and family size, typically at 10% of your discretionary income divided by 12. Discretionary income is calculated as your adjusted gross income minus 150% of the federal poverty line for your family size and state. If your income is low enough, your payment could be $0 per month — you stay in good standing without making payments, though interest may still accrue on some plans.

What is discretionary income for student loans?

Discretionary income is the portion of your income left after subtracting basic living expenses. For most income-driven plans, it is calculated as your adjusted gross income (AGI) minus 150% of the federal poverty guideline for your family size and state. For example, if your AGI is $60,000 and 150% of the poverty line for a family of one is $22,590, your discretionary income is $37,410 — and a 10% IDR payment would be about $311/month.

Should I refinance my federal student loans?

Refinancing federal student loans into a private loan can lower your interest rate, but it permanently forfeits federal protections: income-driven repayment, forgiveness programs (PSLF, Teacher Loan Forgiveness), deferment, forbearance, and death/disability discharge. Generally, keep federal loans federal if you might use PSLF, work in a low-paying field, or value the safety net. Refinance only if your rate is high (above 7%), your income is stable, and you don't qualify for forgiveness programs.

What happens if my IDR payment is $0?

A $0 payment under IDR is not a deferment or forbearance — you are technically current on your loan and the months count toward forgiveness (typically 20–25 years on IDR plans). However, on some plans the unpaid interest continues to accrue and may capitalize, increasing your balance over time. The SAVE plan (formerly REPAYE) subsidizes up to 100% of unpaid interest for some borrowers, while older plans do not. Always check whether your plan covers accruing interest.

How is my monthly payment calculated under the standard plan?

The standard plan uses the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of payments (typically 120 for a 10-year term). This is the same formula used for mortgages and auto loans. The result is a fixed payment that pays off the loan entirely over the term.

Are student loan forgiveness amounts taxable?

It depends on the program. Public Service Loan Forgiveness (PSLF) forgiven balances are tax-free. However, balances forgiven at the end of an income-driven repayment plan (after 20–25 years) are generally considered taxable income by the IRS in the year they are forgiven, which can create a large tax bill. Some states also tax forgiven student debt. The American Rescue Plan Act of 2021 made student loan forgiveness tax-free at the federal level through 2025, but this exclusion is scheduled to expire.

Student Loan Calculator

A student loan calculator is a free online tool that compares federal student loan repayment plans side by side. It shows monthly payment, total interest, and total cost for standard, graduated, and income-driven plans. Free, no sign-up required.

Loan Details

Loan Principal?Enter your loan principal.

Interest Rate?The annual interest rate on your mortgage loan.

Repayment Term?Enter your repayment term.

Annual Income?Your total gross annual income before taxes and deductions.

Family Size?Enter your family size.

End of inputs

Your Student Loan Repayment Plans

Standard Plan

Monthly Payment

$379.84

10 years fixed

Total Interest

$10,580.80

30.23% of principal

Total Paid

$45,580.80

Principal + interest

Graduated Plan

Starting Payment

$189.92

Steps up every 2 years

Total Interest

$13,888.58

Higher than standard

Total Paid

$48,888.58

Principal + interest

Income-Driven (IDR)

Monthly Payment

$311.75

10% of discretionary income

Total Interest

$13,271.16

Often highest of the three

Total Paid

$48,271.16

Balloon may apply at term end

Principal: $35,000.00. Rate: 5.50%. Term: 10 years. Standard payment: $379.84/mo. IDR payment: $311.75/mo (lower than standard). Interest burden: 30.23% of principal.

Monthly Payment Comparison

Total Cost Comparison

Standard Plan Amortization Schedule

Month	Principal	Interest	Balance

120 months · Showing 0 rows

Key Insights

Income-driven repayment lowers your starting payment to $311.75/mo vs $379.84/mo on the standard plan — useful if cash flow is tight today, though you'll pay $13,271.16 in interest over the term.

Total interest of $10,580.80 is more than 30% of the principal — a heavy cost. A shorter term, higher monthly payment, or refinancing to a lower rate would cut this significantly.

IDR lowers your payment only slightly to $311.75/mo. Your income is high enough that the standard plan is likely the better choice unless you expect income volatility.

Your 10-year term is in the standard range for student loans (typically 10 years). This balances monthly affordability against total interest.

Your rate of 5.50% is near current market rates. Refinancing may offer a small improvement, but federal loan benefits (IDR, forgiveness, pauses) usually outweigh the savings — keep your federal loans unless rates drop further.

Guide

How to Use This Calculator

1Enter your loan principal — the total amount you borrowed. For federal Direct Loans, check your StudentAid.gov account for the current balance.
2Adjust the interest rate slider. Federal undergraduate Direct Loans are currently around 5.5%, graduate PLUS loans around 8.05%, and private loans vary widely.
3Choose your repayment term. Federal standard is 10 years, but extended plans can go up to 25 years. Shorter terms mean less interest but higher payments.
4Set your annual income and family size — these drive the income-driven (IDR) calculation. Use your most recent tax return's adjusted gross income (AGI).
5Compare the three plans side-by-side in the result panel. The standard plan has the highest monthly payment but lowest total cost; IDR has the lowest payment but highest total cost.
6Examine the monthly payment comparison bar chart to see how the plans differ in monthly cash flow burden.
7Review the total cost comparison chart — the dashed reference line shows your principal, so you can see how much of each plan's total is interest.
8Use the AI insights to identify whether IDR eligibility, refinancing potential, or payoff timeline are working in your favor.

Formula

How It's Calculated

Student loan repayment calculation per plan:

Standard plan (amortizing):
  M = P × [r(1+r)^n] / [(1+r)^n − 1]
  Where:
    M = monthly payment
    P = principal
    r = monthly interest rate (annual rate ÷ 12)
    n = total number of payments (years × 12)

Graduated plan (stepped):
  Payments start at ~50% of standard, increase every 24 months,
  ramping to ~150% of standard by end of term.
  Total cost is typically 10–20% higher than standard.

Income-Driven (IDR) plan:
  discretionaryIncome = max(0, AGI − 1.5 × povertyLine)
  povertyLine = $15,060 + ($5,380 × (familySize − 1))
  monthlyPayment = min(standardPayment, discretionaryIncome × 10% ÷ 12)

Example: $35,000 principal at 5.5% over 10 years
  Standard:   ~$381/mo, total interest ~$10,720
  Graduated:  ~$190/mo start, total interest ~$12,400
  IDR ($60k income, family of 1):
              discretionary = 60000 − 1.5 × 15060 = $37,410
              payment = 37410 × 0.10 / 12 = ~$311/mo
              (capped at standard since $311 < $381)

Glossary

Key Terms

FAQ

Frequently Asked Questions

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