Which IDR plan has the lowest payment?

For new borrowers with undergraduate loans, IBR at 5% of discretionary income typically produces the lowest payment. For graduate loans or older borrowers, PAYE at 10% is usually the best option. ICR at 20% always has the highest payment among IDR plans.

What happened to the SAVE plan?

The SAVE (Saving on a Valuable Education) plan was challenged in federal court and struck down in 2024. Borrowers enrolled in SAVE were placed into forbearance and then transitioned to other available IDR plans, primarily IBR. As of 2026, the available IDR plans are IBR, PAYE, and ICR.

When are student loans forgiven under IDR?

Undergraduate-only borrowers on IBR (new) receive forgiveness after 20 years. Graduate borrowers and those on old IBR or ICR receive forgiveness after 25 years. PAYE borrowers receive forgiveness after 20 years regardless of loan type. PSLF provides forgiveness after just 10 years of qualifying public service employment.

What are the 2026 federal poverty guidelines?

For the contiguous 48 states: 1 person: $15,650; 2 people: $21,150; 3 people: $26,650; 4 people: $32,150. Add $5,500 for each additional person. Alaska and Hawaii have higher guidelines.

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Student Loan Income-Driven Repayment Estimator

Estimate monthly payments and forgiveness timelines under IBR, PAYE, and ICR income-driven repayment plans using 2026 federal poverty guidelines and current rules.

Total Loan Balance

Interest Rate (%)

Adjusted Gross Income (AGI)

Family Size

Loan Type

IDR Plan

Note: The SAVE plan was struck down by federal courts in 2024. Borrowers were transitioned to IBR or other available IDR plans. IBR for new borrowers is the closest available alternative as of 2026.

IDR Payment Estimate

Enter loan and income details and click estimate.

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Introduction

This Student Loan Idr Estimator is designed for professionals who need accurate and reliable calculations in their daily work. Whether you are planning finances, managing projects, or making critical business decisions, having the right numbers at your fingertips is essential. This tool provides instant results based on proven formulas, saving you time and reducing the risk of manual calculation errors. By using this calculator, you can focus on analysis and decision-making rather than spending time on complex computations. The interface is straightforward and designed for practical use, ensuring that you get the information you need quickly and efficiently.

What This Calculator Does

This student loan income-driven repayment (IDR) estimator calculates your estimated monthly payment and forgiveness timeline under the available federal IDR plans: IBR (Income-Based Repayment), PAYE (Pay As You Earn), and ICR (Income-Contingent Repayment). It uses your adjusted gross income, family size, and the 2026 federal poverty guidelines to determine discretionary income and calculate payments. Note that the SAVE plan was struck down by federal courts in 2024, and affected borrowers were transitioned to IBR or other available IDR plans.

The Formula

IDR Payment = (AGI - 150% of Poverty Line) x Payment Percentage / 12

Income-driven repayment plans base your monthly payment on discretionary income, which is the difference between your adjusted gross income (AGI) and 150% of the federal poverty guideline for your family size and state (100% for ICR). The payment percentage varies by plan: 5% for undergraduate IBR (new borrowers), 10% for PAYE, 15% for old IBR, and 20% for ICR. Remaining balances are forgiven after 20 or 25 years of qualifying payments depending on the plan.

Step-by-Step Example

Enter loan details

$35,000 total student loan balance at 6.53% interest rate. Undergraduate loans.

Enter income information

AGI: $45,000. Family size: 1. 2026 poverty guideline for 1 person: $15,650. 150% threshold: $23,475.

Calculate discretionary income

$45,000 - $23,475 = $21,525 discretionary income.

Calculate IBR payment

New borrower IBR for undergrad: 5% of discretionary. $21,525 x 5% / 12 = $90/month. Standard 10-year payment would be $398/month. Savings: $308/month.

Real-World Use Cases

Plan Comparison

Compare monthly payments across all available IDR plans to find the option with the lowest payment or total cost depending on your financial goals.

PSLF Strategy Planning

Public Service Loan Forgiveness requires 10 years of IDR payments while working for a qualifying employer. Calculate your total cost under PSLF versus standard repayment.

Post-Graduation Budgeting

Estimate your student loan payment before graduating to plan your post-college budget and determine what salary you need to manage payments comfortably.

Common Mistakes to Avoid

Not recertifying income annually. IDR plans require annual income recertification. Missing the deadline can cause your payment to jump to the standard amount.
Forgetting that forgiven balances may be taxable. Under current law, IDR forgiveness after 20-25 years may be treated as taxable income (PSLF forgiveness is tax-free).
Assuming the SAVE plan is still available. The SAVE plan was struck down by federal courts in 2024. Borrowers should evaluate IBR, PAYE, or ICR as alternatives.
Not considering total interest paid over the life of the plan. Lower monthly payments mean more interest accrues. A $35,000 loan on a 20-year IDR plan may cost significantly more in total interest than a 10-year standard plan.
Ignoring PSLF eligibility. If you work for a government or nonprofit employer, PSLF forgiveness after 10 years (tax-free) is far more valuable than 20-25 year IDR forgiveness.

Frequently Asked Questions

Accuracy and Disclaimer

IDR payment estimates are based on simplified calculations using 2026 federal poverty guidelines. Actual payments may differ based on your specific loan servicer calculations, tax filing status, and income documentation. The SAVE plan status reflects federal court rulings as of early 2025. Consult studentaid.gov or your loan servicer for official payment calculations.

Conclusion

This calculator provides a reliable way to perform essential calculations for your professional needs. The results are based on standard formulas and should be used as estimates for planning and analysis purposes. For critical decisions, especially those involving financial, legal, or medical matters, it is always advisable to verify results with a qualified professional. Use this tool as part of your broader decision-making process, and explore related calculators on this platform to support your comprehensive planning needs. Regular use of accurate calculation tools helps ensure consistency and precision in your professional work.

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