What is the difference between IBR, PAYE, and SAVE?

All are income-driven plans. IBR uses 10-15% of discretionary income. PAYE uses 10%. SAVE (formerly REPAYE) uses 10% with additional benefits.

What happens after 20-25 years?

Remaining balance is forgiven after 20 years (undergraduate) or 25 years (graduate). The forgiven amount may be taxable.

Yes, you must recertify income and family size annually. If you miss the deadline, your payment reverts to the standard amount.

Estimate your monthly payment under an Income-Based Repayment (IBR) plan based on your income, family size, and poverty guideline.

Annual Gross Income ($)

Family Size

Poverty Guideline ($)

Federal poverty level for family of 1 (2024)

IBR Percentage (%)

10% for new borrowers, 15% for older

Monthly IBR Payment

$187

Annual Payment$2,241

Discretionary Income$22,410

Monthly IBR Payment vs Annual Gross Income ($)

IBR caps payments at a percentage of your discretionary income.

Monthly Payment = (Discretionary Income x IBR%) / 12

Where Discretionary Income = AGI - 150% of Poverty Guideline for your family size.

New borrowers (after 2014): 10% of discretionary income

Older borrowers: 15% of discretionary income

Single borrower earning $45,000 with 10% IBR rate.