Student Loan Repayment Plan Comparison

Compare Your Repayment Options

Choosing the right federal student loan repayment plan can save you thousands of dollars or lower your monthly payments significantly. Use our comparison tool to see how each plan affects your budget and total loan cost.

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Understanding Federal Repayment Plans

The federal government offers several repayment plans for student loans. Each has different terms, payment calculations, and forgiveness options. Understanding the differences is essential for making the best financial decision for your circumstances.

Standard Repayment Plan i

The Standard Repayment Plan is the default option for federal student loans. Payments are fixed over a 10-year period. While monthly payments are typically higher than income-driven plans, you pay less in total interest. This plan does not offer loan forgiveness, but it is the fastest path to becoming debt-free. It is ideal for borrowers who can comfortably afford the fixed payment amount and want to minimize total interest costs.

Income-Based Repayment (IBR) i

IBR caps your monthly payment at 10-15% of your discretionary income, depending on when you first borrowed. New borrowers after July 1, 2014 pay 10% with forgiveness after 20 years, while earlier borrowers pay 15% with forgiveness after 25 years. Discretionary income is calculated as the difference between your adjusted gross income and 150% of the federal poverty guideline for your family size and state.

Pay As You Earn (PAYE) i

PAYE limits payments to 10% of your discretionary income, with remaining balances forgiven after 20 years of qualifying payments. To be eligible, you must be a new borrower as of October 1, 2007, and have received a Direct Loan disbursement on or after October 1, 2011. Payments are never more than what you would pay under the Standard Repayment Plan, providing a built-in cap.

RAP (Replacing REPAYE) Under 2026 OBBBA i

The Repayment Assistance Plan (RAP) replaces REPAYE under the 2026 One Big Beautiful Bill Act. RAP sets payments based on a percentage of discretionary income with modified calculation formulas. Borrowers previously enrolled in REPAYE are automatically transitioned to RAP. The forgiveness timeline and tax treatment of forgiven amounts may differ from the previous REPAYE terms.

Income-Contingent Repayment (ICR) i

ICR is the oldest income-driven plan and the only one available for Parent PLUS borrowers (after consolidation). Payments are the lesser of 20% of discretionary income or what you would pay on a 12-year fixed plan, adjusted for income. Forgiveness comes after 25 years. ICR generally results in the highest payments among IDR plans, but it remains an important option for Parent PLUS loan holders seeking income-driven payments.

Extended and Graduated Plans

The Extended Repayment Plan stretches payments over 25 years (for borrowers with more than $30,000 in Direct Loans), reducing monthly costs but increasing total interest. The Graduated Plan starts with lower payments that increase every two years over a 10-year period. Neither plan offers loan forgiveness. These options suit borrowers who need short-term payment relief but expect rising income.

Key Factors to Consider

When choosing a repayment plan, consider your current income relative to your loan balance, expected income growth, whether you qualify for Public Service Loan Forgiveness (PSLF), your tax filing status, family size, and the potential tax implications of loan forgiveness. Borrowers pursuing PSLF should select an income-driven plan to minimize total payments before the 120-payment forgiveness threshold.

Remember that switching repayment plans is generally possible at any time by contacting your loan servicer. However, switching plans may affect your progress toward forgiveness. Always verify your specific situation with your servicer before making changes.

How to Choose the Right Repayment Plan

Selecting the optimal repayment plan depends on several key factors. Consider your current income stability, career trajectory, loan balance relative to your salary, and whether you qualify for any forgiveness programs. Here is a quick decision framework:

• Pursuing PSLF? Choose the IDR plan with the lowest monthly payment (usually SAVE/RAP or PAYE) to maximize the amount forgiven tax-free after 120 payments.
• High income, small balance? The Standard 10-year plan minimizes total interest paid and gets you debt-free fastest.
• Low income, high balance? An IDR plan protects you from unaffordable payments. SAVE/RAP offers the best interest subsidies.
• Private loans or strong credit? Consider refinancing for a potentially lower rate than any federal plan.

All Federal Repayment Plans Comparison Table