Student Loan IDR Comparison — IBR vs PAYE vs ICR Plans

Compare all Income-Driven Repayment plans side by side: IBR, PAYE, REPAYE, and ICR. See monthly payments, total cost, and forgiveness. Free, instant results.
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Note: The SAVE plan was struck down by federal court on March 10, 2026. Borrowers enrolled in SAVE must transition to IBR, PAYE, or ICR by October 2026. Visit StudentAid.gov for guidance. This calculator covers IBR, PAYE, and ICR plans.

Lowest Monthly Payment

IBR: $175.50

Lowest Total Cost

Standard: $67,823.90

Largest Forgiveness

IBR: $11,138.84

IDR Plan Comparison

IBR / PAYE / ICR / Standard
Monthly Payment (Year 1)$175.50 / $175.50 / $351.00 / $565.20
Monthly Payment (Year 10)$382.25 / $382.25 / $764.50 / $565.20
Total Amount Paid$95,105.49 / $95,105.49 / $73,019.05 / $67,823.90
Total Interest Paid$56,244.33 / $56,244.33 / $23,019.05 / $17,823.90
Forgiveness Amount$11,138.84 / $11,138.84 / $0.00 / $0.00
Repayment Period20 yrs / 20 yrs / 11 yrs / 10 yrs
"Tax Bomb" at Forgiveness$2,450.55 / $2,450.55 / $0.00 / $0.00

Year: IBR

YearIncome / Monthly Payment / Total / Balance
Year 1$45,000.00 / $175.50 / $2,106.00 / $51,126.67
Year 2$47,250.00 / $194.25 / $2,331.00 / $52,095.88
Year 3$49,612.50 / $213.94 / $2,567.25 / $52,885.66
Year 4$52,093.13 / $234.61 / $2,815.31 / $53,472.04
Year 5$54,697.78 / $256.31 / $3,075.78 / $53,828.81
Year 10$69,809.77 / $382.25 / $4,586.98 / $51,076.03
Year 15$89,096.92 / $542.97 / $6,515.69 / $37,051.19
Year 20$113,712.76 / $565.20 / $6,782.39 / $11,138.84

Use the Student Loan IDR Comparison — IBR vs PAYE vs ICR Plans above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Income-Driven Repayment (IDR) plans cap federal student loan payments at a percentage of your discretionary income rather than basing them on the loan balance. Discretionary income is defined as the difference between your adjusted gross income (AGI) and a percentage of the federal poverty guideline for your family size and state. The main IDR plans are: Income-Based Repayment (IBR), which caps payments at 10% of discretionary income for new borrowers after July 2014 or 15% for earlier borrowers; Pay As You Earn (PAYE), at 10%; Saving on a Valuable Education (SAVE, formerly REPAYE); and Income-Contingent Repayment (ICR), at 20% or a fixed 12-year payment amount, whichever is less.

Under most IDR plans, discretionary income is calculated as AGI minus 150% of the federal poverty guideline. For 2026, 150% of the poverty guideline for a single person in the contiguous U.S. is approximately $23,220. If your AGI is $50,000, your discretionary income is $50,000 - $23,220 = $26,780, and your annual payment under a 10% plan would be $2,678, or about $223/month. If your income is low enough that the calculated payment is $0, you make no payment but the month still counts toward forgiveness.

The forgiveness timeline depends on the plan and loan type. Under IBR (new borrowers) and PAYE, remaining balances are forgiven after 20 years of qualifying payments for undergraduate loans. ICR requires 25 years. Under the original REPAYE structure, undergraduate loans are forgiven after 20 years and graduate loans after 25 years. Public Service Loan Forgiveness (PSLF) offers forgiveness after just 10 years (120 qualifying payments) for borrowers working full-time for a qualifying government or nonprofit employer. PSLF forgiveness is tax-free; IDR forgiveness after 20-25 years is currently tax-free through 2025 under the American Rescue Plan Act, but may become taxable income afterward.

Choosing the right IDR plan depends on your income trajectory, loan balance, and career plans. If you expect your income to rise significantly, locking in a lower payment with PAYE (which caps payments at the standard 10-year amount) may be advantageous. If you work in public service, entering any IDR plan and pursuing PSLF after 10 years is often the most cost-effective strategy. For high-balance borrowers with moderate incomes, the total amount repaid under IDR plus eventual forgiveness is frequently less than what they would pay under the standard 10-year plan, even accounting for the additional interest that accrues during the extended repayment period.

Example: $65,000 loan balance, $48,000 AGI, single, IBR (new borrower)

  1. 1 Step 1: Calculate discretionary income. AGI of $48,000 minus 150% of the poverty guideline ($22,590 for a single person) = $25,410 discretionary income.
  2. 2 Step 2: Annual IBR payment = 10% of discretionary income = $25,410 x 10% = $2,541/year, or $211.75/month. Compare to the standard 10-year payment on $65,000 at 5.5% interest: approximately $705/month.
  3. 3 Step 3: If income grows by 3% annually, payments increase each year. Year 5 AGI = $55,647, discretionary income = $33,057, payment = $275/month. Year 10 AGI = $64,507, discretionary income = $41,917, payment = $349/month.
  4. 4 Step 4: Under IBR, the remaining balance is forgiven after 20 years. With lower monthly payments, more interest accrues. Estimated total paid over 20 years = approximately $72,000 (less than the $84,600 under the standard plan).
  5. 5 Step 5: If you qualify for PSLF (public service employment), forgiveness occurs after just 10 years. Estimated total paid over 10 years = approximately $33,000, with the remaining balance (approximately $48,000) forgiven tax-free.

Source: StudentAid.gov — Income-Driven Repayment Plans · Last updated: January 2026

Frequently Asked Questions

What income-driven repayment plans are available?
The main IDR plans are Income-Based Repayment (IBR), Pay As You Earn (PAYE), Saving on a Valuable Education (SAVE, formerly REPAYE), and Income-Contingent Repayment (ICR). Each caps payments at 10-20% of your discretionary income. Eligibility and terms differ by when you borrowed and your loan type.
How is discretionary income calculated for IDR plans?
For most IDR plans, discretionary income is your adjusted gross income (AGI) minus 150% of the federal poverty guideline for your family size and state. For 2026, 150% of the poverty line for a single person in the contiguous U.S. is approximately $23,220. If your AGI is $50,000, your discretionary income is $26,780.
When is the remaining balance forgiven under IDR?
Under IBR (new borrowers) and PAYE, remaining balances are forgiven after 20 years of qualifying payments for undergraduate loans. ICR requires 25 years. Under the original REPAYE structure, undergraduate loans are forgiven after 20 years and graduate loans after 25 years. PSLF provides forgiveness after 10 years for public service workers.
Is student loan forgiveness taxable?
Public Service Loan Forgiveness (PSLF) is always tax-free at the federal level. IDR forgiveness after 20-25 years is currently tax-free through 2025 under the American Rescue Plan Act. After 2025, forgiven amounts under IDR may be treated as taxable income unless Congress extends the exemption. State tax treatment varies.
What is Public Service Loan Forgiveness (PSLF)?
PSLF forgives remaining federal Direct Loan balances after 120 qualifying monthly payments (10 years) made while working full-time for a qualifying employer (government agencies, 501(c)(3) nonprofits, and certain other public service organizations). Payments must be made under an IDR plan or the 10-year standard plan. PSLF forgiveness is tax-free.
Can my IDR payment be $0 per month?
Yes. If your discretionary income is zero or negative (your AGI is at or below 150% of the poverty line), your IDR payment is $0. Months with a $0 payment still count toward the 20-25 year forgiveness timeline and toward PSLF's 120-payment requirement. You must recertify your income annually to maintain a $0 payment.
Should I use the standard repayment plan or an IDR plan?
The standard 10-year plan charges the least total interest but has the highest monthly payments. IDR plans lower monthly payments but extend the timeline, causing more interest to accrue. IDR makes sense if your balance is high relative to your income, if you qualify for PSLF, or if you need immediate cash-flow relief. If you can afford the standard payment, it is typically the cheapest option.
How do I recertify my income for IDR?
You must recertify your income and family size annually with your loan servicer. You can do this at StudentAid.gov or through your servicer, usually by providing your most recent tax return or pay stubs. If you miss the deadline, your payment may temporarily increase to the standard plan amount, and any unpaid interest may capitalize.

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