Income-Driven Repayment Calculator
Calculate income-driven repayment payments with all IDR plans: IBR, PAYE, REPAYE, and ICR. Compare options based on your income, family size, and loan details.
Calculate IDR Payments
Enter your income, family size, and loan details to calculate estimated monthly payments under each income-driven repayment plan.
Income-Driven Repayment Calculator
Calculate IDR payments based on income and family size
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Income-Driven Repayment Plans Comparison
Income-Based Repayment (IBR)
Eligibility Requirements:
- Partial financial hardship required
- All federal loan types eligible
- New borrowers (after 7/1/2014) get 10% rate
- Previous borrowers get 15% rate
Advantages
- Lower payment for high debt-to-income ratios
- Interest subsidy for first 3 years on subsidized loans
- Married filing separately excludes spouse income
- Payment capped at standard plan amount
Limitations
- Must demonstrate partial financial hardship
- Annual recertification required
- Interest may capitalize when leaving plan
- Different rates for new vs old borrowers
Best For:
Borrowers with high debt relative to income who want payment predictability
Pay As You Earn (PAYE)
Eligibility Requirements:
- New borrower on or after October 1, 2007
- Received disbursement on or after October 1, 2011
- Partial financial hardship required
- Direct Loans and some FFEL loans only
Advantages
- Lowest payment calculation (10%)
- Shortest forgiveness timeline (20 years)
- Interest subsidy for first 3 years
- Payment capped at standard plan amount
Limitations
- Strict new borrower requirements
- Must have received loan disbursement after 10/1/2011
- Limited to Direct Loans and certain FFEL loans
- Must demonstrate partial financial hardship
Best For:
Recent borrowers with lower incomes seeking minimum payments
Revised Pay As You Earn (REPAYE)
Eligibility Requirements:
- Direct Loans only
- No financial hardship requirement
- No borrowing date restrictions
- All borrowers eligible regardless of when borrowed
Advantages
- Available to all Direct Loan borrowers
- Best interest subsidy (50% of unpaid interest)
- No borrowing date restrictions
- Automatic interest rate reduction benefits
Limitations
- Always includes spouse income (even if filing separately)
- No payment cap (payments can be very high)
- Graduate loans get 25-year forgiveness timeline
- Newer program with less established track record
Best For:
Borrowers wanting maximum interest benefits and program flexibility
Income-Contingent Repayment (ICR)
Eligibility Requirements:
- Direct Loans only
- No income requirements
- No financial hardship demonstration needed
- Parent PLUS loans eligible after consolidation
Advantages
- Available to all Direct Loan borrowers
- No income requirements or financial hardship test
- Parent PLUS loans eligible after consolidation
- Longest-established IDR plan
Limitations
- Highest payment calculation (20%)
- Longest forgiveness timeline (25 years)
- No interest subsidies
- Generally less favorable than other IDR plans
Best For:
Parent PLUS borrowers and those who don't qualify for other IDR plans
Real-World IDR Payment Examples
Single Graduate: $50,000 income, 1 person household
Income Details
IDR Monthly Payments
Payment Notes
Analysis
IDR plans provide significant savings vs standard repayment
Married Teacher: $45,000 income, spouse $35,000, 2 children
Income Details
IDR Monthly Payments
Payment Notes
Analysis
Married filing separately benefits IBR/PAYE but not REPAYE
Low Income Graduate: $30,000 income, 1 person household
Income Details
IDR Monthly Payments
Payment Notes
Analysis
Dramatic payment reduction with IDR for low-income borrowers
High Income Professional: $120,000 income, spouse $80,000, 1 child
Income Details
IDR Monthly Payments
Payment Notes
Analysis
High earners may pay more with REPAYE/ICR than standard repayment
IDR Interest Subsidy Benefits
IBR & PAYE Subsidy
Coverage Details:
- Duration:First 3 consecutive years
- Coverage:Subsidized loans only
- Benefit:100% coverage
Example Impact:
$30,000 loan at 5.5% with $200 payment: Government covers all unpaid interest on subsidized portion for first 3 years, preventing balance growth.
REPAYE Subsidy
Coverage Details:
- Duration:Entire repayment period
- Coverage:All federal loans
- Benefit:50% coverage
Example Impact:
$30,000 loan at 5.5% with $150 payment: Government pays 50% of $12.50 unpaid monthly interest, significantly reducing balance growth throughout repayment.
ICR Subsidy
Coverage Details:
- Duration:No subsidy available
- Coverage:None
- Benefit:No coverage
Impact:
ICR payments are higher (20% vs 10%) so they typically cover interest plus principal, but no government assistance with unpaid interest if payments are low.
Annual Recertification Requirements
Initial Application
Required Actions:
- Complete IDR application online or by mail
- Provide income documentation (tax return or pay stubs)
- Submit family size information
- Choose specific IDR plan if eligible for multiple
Timeline:
Before loans go into default
Consequences:
Required to start IDR payments
Annual Recertification
Required Actions:
- Submit updated income and family size by deadline
- Provide most recent tax return or alternative documentation
- Review and confirm chosen IDR plan
- Update contact information if changed
Timeline:
By anniversary date of IDR plan enrollment
Consequences:
Late recertification removes IDR benefits temporarily
Missed Recertification
Required Actions:
- Payment amount reverts to standard 10-year amount
- Capitalized unpaid interest added to principal
- Must recertify to restore IDR benefits
- May lose progress toward forgiveness timeline
Timeline:
Must recertify within reasonable time
Consequences:
Loss of IDR benefits until recertification completed
Recertification Success Tips
Income-Driven Repayment FAQ
How is income-driven repayment calculated?
IDR payments are calculated as 10-20% of discretionary income (your income above 150% of the federal poverty guideline for your family size). IBR, PAYE, and REPAYE use 10% (15% for older IBR borrowers), while ICR uses 20% of discretionary income or a 12-year fixed payment, whichever is less.
What is the difference between IBR, PAYE, REPAYE, and ICR?
IBR: 10-15% payment, 20-25yr forgiveness, financial hardship required. PAYE: 10% payment, 20yr forgiveness, strict eligibility dates. REPAYE: 10% payment, always includes spouse income, best interest benefits. ICR: 20% payment, 25yr forgiveness, Parent PLUS eligible after consolidation.
Do I have to include spouse income for income-driven repayment?
Depends on the plan and tax filing status. IBR, PAYE, and ICR exclude spouse income if you file taxes separately. REPAYE always includes spouse income regardless of tax filing status. Consider the tax implications of filing separately vs. potential IDR payment savings.
How often do I need to recertify for income-driven repayment?
Annual recertification is required for all IDR plans. You must submit updated income and family size information by your plan anniversary date each year. Missing the deadline causes payments to revert to the standard 10-year amount and capitalizes unpaid interest.
What happens to unpaid interest on income-driven repayment?
IBR and PAYE provide 100% interest subsidy on subsidized loans for first 3 years. REPAYE provides 50% interest subsidy on all unpaid interest throughout repayment. ICR has no interest subsidy. Unpaid interest may capitalize when leaving plans or missing recertification.
Can I switch between different income-driven repayment plans?
Yes, you can switch between IDR plans annually during recertification, provided you meet eligibility requirements for the new plan. However, switching may cause unpaid interest to capitalize, and you'll need to restart the payment count for forgiveness purposes in some cases.
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Find Your Best Payment Option
Use our calculator to compare all IDR plans, understand your options, and choose the payment plan that works best for your financial situation.