Income-Driven Repayment Calculator

Income-Driven Repayment Calculator Guide: RAP, IBR, PAYE, and ICR Under the 2026 Federal Rules

Income-driven repayment does not calculate a student-loan payment from principal and interest in the same way as an ordinary amortizing loan. Instead, federal law determines the required payment using income and household-related information, subject to the rules of the repayment plan for which the borrower and loans are eligible.

That makes eligibility the first calculation. Federal Student Aid currently states that the income-driven plans available to a borrower depend on both the type of federal loans held and the dates those loans were first disbursed.

The July 1, 2026 repayment changes created a major dividing line. If all eligible loans were first disbursed on or after July 1, 2026, Federal Student Aid states that the Repayment Assistance Plan, or RAP, is generally the only available income-driven repayment plan. Direct Parent PLUS Loans and consolidation loans that repaid Parent PLUS debt are excluded from RAP.

Borrowers whose loans were all disbursed before July 1, 2026 can have a broader legacy plan set depending on loan type and borrower history. Those plans can include Income-Based Repayment, Pay As You Earn, Income-Contingent Repayment, and RAP.

Borrowers with a mixture of older and newer loans require even more care. Federal Student Aid states that mixed loan portfolios can result in loans being eligible for different repayment plans. A calculator should therefore identify each loan cohort rather than assuming that one plan necessarily applies to the entire portfolio.

RAP uses a different payment formula from the legacy IDR plans. Instead of defining discretionary income using a poverty-guideline subtraction, RAP applies an income-band percentage directly to adjusted gross income, divides that annual amount by 12, reduces the monthly amount by $50 for each dependent claimed on the federal tax return, and imposes a $10 monthly minimum.

Current RAP percentages increase with income. The base annual payment ranges from $120 for AGI not above $10,000 to 10% of AGI for income above $100,000, with intermediate bands increasing by one percentage point for each $10,000 income range.

RAP also contains two important balance protections. If the required payment is less than the interest accruing for the month, current federal servicing guidance states that the unpaid interest is subsidized. RAP also includes a matching-principal feature intended to ensure that a qualifying full and on-time payment reduces principal by at least the amount paid, up to a $50 monthly matching amount.

Legacy IBR and PAYE work differently. They generally use discretionary income defined as adjusted gross income minus 150% of the applicable poverty guideline. PAYE generally uses 10% of discretionary income, while IBR generally uses either 10% or 15% depending on the borrower’s loan history. Both can cap the required payment relative to the traditional 10-year Standard payment.

ICR uses a still different calculation. Current federal guidance describes the payment as the lesser of 20% of discretionary income or the amount that would be paid under a 12-year fixed-payment calculation adjusted according to income. ICR defines discretionary income using 100% of the applicable poverty guideline rather than 150%.

The plan landscape is transitional. PAYE and ICR are scheduled to end no later than July 1, 2028, while SAVE ended by court order in March 2026 and is no longer available. A serious calculator must therefore include plan sunset dates rather than projecting obsolete formulas indefinitely.

The most useful output is not simply the lowest payment. A lower income-driven payment can improve cash flow but can also extend repayment and, under some plans, increase total interest. The calculator should therefore show payment, interest behavior, repayment horizon, estimated remaining balance, possible discharge, and the tax assumptions surrounding that discharge.

How to Calculate an Income-Driven Student Loan Payment Using Current Federal Plan Eligibility

Identify the loan type first: Determine whether the debt consists of Direct Subsidized, Direct Unsubsidized, Grad PLUS, FFEL, Parent PLUS, Perkins, or Direct Consolidation Loans. Plan eligibility differs by loan type.
Enter the first-disbursement dates: July 1, 2026 is a critical eligibility boundary. Do not calculate plan options from income alone.
Identify Parent PLUS history: Parent PLUS and consolidation loans that repaid Parent PLUS debt are excluded from RAP and have special restrictions under legacy plans.
Enter adjusted gross income: Use AGI from the applicable federal tax information or other current-income documentation allowed under federal rules.
Enter tax filing status: For married borrowers, joint versus separate filing can materially affect which spouse income enters the calculation.
Enter dependents or family size correctly: RAP uses dependents claimed on the federal tax return, while legacy plan calculations can use family size under their applicable rules.
Calculate RAP if eligible: Apply the AGI-band percentage, divide the annual base payment by 12, subtract $50 per dependent, and apply the $10 monthly floor.
Calculate legacy plans only if eligible: Do not display PAYE, IBR, or ICR simply because their formulas produce attractive payments. Eligibility must be established first.
Compare repayment period and interest treatment: The lowest current payment may not produce the lowest total cost.
Include potential discharge and tax assumptions separately: Do not subtract a projected future discharge from cost without clearly identifying the repayment period and possible tax treatment.

Formula and variables

RAP applies a percentage to adjusted gross income according to the borrower’s AGI band, divides the annual amount by 12, subtracts $50 for each dependent claimed on the federal tax return, and applies a $10 monthly floor. IBR and PAYE generally calculate discretionary income as AGI minus 150% of the applicable poverty guideline, while ICR generally uses AGI minus 100% of the poverty guideline. Each legacy plan then applies its statutory percentage and applicable payment cap.

RAP monthly payment = max($10, RAP base annual payment ÷ 12 − $50 × dependents); Legacy IDR uses plan-specific discretionary-income formulas

AGI — Adjusted gross income: The income measure generally used in federal IDR calculations, subject to current federal documentation rules.
D — Dependents: For RAP, dependents claimed on the federal tax return and used to reduce the monthly payment by $50 each.
FS — Family size: The household measure used in legacy IDR calculations where the applicable plan formula relies on poverty guidelines.
PG — Poverty guideline: The applicable federal poverty guideline for the borrower’s location and household size, used in legacy discretionary-income calculations.
DI — Discretionary income: The income remaining after the plan-specific poverty-guideline deduction for IBR, PAYE, or ICR.
BP — RAP base payment: The annual payment amount produced by the RAP AGI band before the dependent reduction.
PMT — Monthly IDR payment: The estimated monthly payment required under the selected income-driven repayment plan.
RB — Remaining balance: The modeled loan balance remaining after the applicable repayment period before potential discharge.

Scenario 1: RAP Payment for a Borrower With $65,000 AGI and Two Dependents

A borrower has eligible Direct Loans and qualifies for RAP. The borrower has adjusted gross income of $65,000 and claims two dependents on the federal tax return. The borrower files separately from a spouse, so only the borrower’s income and claimed dependents are used in this simplified RAP scenario.

Adjusted gross income: $65,000
Applicable RAP AGI band: $60,000–$70,000
RAP base percentage: 6%
Dependents: 2
Dependent reduction: $100/month

At $65,000 of AGI, the applicable RAP base percentage is 6%.
6% of $65,000 = $3,900 of annual base payment.
$3,900 ÷ 12 = $325 monthly before dependent reductions.
Two claimed dependents reduce the payment by $50 each, or $100 total.
$325 − $100 = $225.
Because $225 exceeds the $10 RAP minimum, the modeled required monthly payment is $225.

Result: The estimated RAP payment is $225 per month under the entered income and dependent assumptions.

The payment is determined primarily by income and dependents rather than by the borrower’s principal balance. A borrower with substantially more or less federal debt but the same applicable RAP income inputs can therefore have a similar required payment, although interest, principal reduction, and eventual discharge can differ.

Understanding your results

Eligible plans

This should be the first result displayed.

A payment estimate for an ineligible plan is not useful merely because the formula can be calculated.

Estimated monthly payment

This is the modeled payment under the selected plan and current income assumptions.

IDR payments are generally recalculated periodically and can change when income, dependents, family size, or filing circumstances change.

Payment as a percentage of income

This shows the required student-loan payment relative to monthly AGI.

For RAP, the effective percentage after dependent reductions can be lower than the base income-band percentage.

Estimated unpaid monthly interest

This compares the calculated payment with modeled monthly interest.

Under RAP, current rules subsidize interest not covered by the required payment.

Projected principal reduction

RAP includes a matching-principal mechanism when the borrower’s qualifying full payment does not reduce principal sufficiently.

Legacy plans have different interest and principal behavior.

Potential discharge date

This is based on the repayment period associated with the selected plan and qualifying payment assumptions.

It should not be interpreted as guaranteed forgiveness because eligibility and qualifying-payment requirements still apply.

Assumptions

The borrower has eligible federal student loans.
Loan type and disbursement-date inputs accurately represent the borrower’s federal portfolio.
AGI and household information are entered according to the selected plan’s current rules.
RAP dependents are based on dependents claimed on the applicable federal tax return.
Legacy-plan poverty guidelines are updated to the currently applicable federal amounts.
The borrower makes full and on-time qualifying payments.
Income remains constant unless an income-growth scenario is explicitly modeled.
No new federal student loan changes are assumed after the reviewed date.
Potential discharge is modeled only after the required qualifying repayment period.
PSLF is not assumed unless separately modeled.

Limitations

Federal student-loan repayment law changed materially in 2026 and can change again. The calculator should be reviewed regularly rather than treated as static financial content.
Federal Student Aid states that plan eligibility depends on both loan type and disbursement date.
If all eligible loans were disbursed on or after July 1, 2026, RAP is generally the only available IDR plan.
Borrowers with mixed pre- and post-July 1, 2026 loan portfolios can have more complicated eligibility and may need separate loan-group analysis.
Parent PLUS Loans are not eligible for RAP.
Direct Consolidation Loans that repaid Parent PLUS debt are also excluded from RAP under current rules.
PAYE and ICR are scheduled to end no later than July 1, 2028.
SAVE ended by federal court order in March 2026 and should not be included as a current repayment option.
IBR eligibility can require a partial-financial-hardship style comparison and depends on borrower history.
PAYE has additional historical new-borrower and disbursement-date requirements beyond the payment formula.
ICR requires a second 12-year adjusted-payment calculation that is more complex than simply calculating 20% of discretionary income.
Federal poverty guidelines change over time and differ for Alaska and Hawaii.
Married borrower calculations can require allocation when both spouses have federal student-loan debt.
RAP joint-filing calculations can reduce the borrower’s share when a spouse also has federal student loans, which a simplified single-borrower calculator may not reproduce exactly without spouse-loan inputs.
Actual loan interest accrues according to federal servicing rules rather than a simple annual approximation.
Potential IDR discharge may be taxable. Federal Student Aid currently states that IDR discharge occurring on or after January 1, 2026 may be treated as taxable income for federal purposes, with state tax treatment varying.

Common mistakes

Calculating an IDR payment before checking plan eligibility.
Showing SAVE as a current repayment option after it ended in 2026.
Assuming every borrower can choose RAP, IBR, PAYE, and ICR freely.
Ignoring the July 1, 2026 disbursement-date boundary.
Treating Parent PLUS as RAP-eligible.
Assuming double consolidation creates RAP eligibility for Parent PLUS debt.
Using family size and dependents interchangeably across every plan.
Applying the RAP percentage to discretionary income instead of AGI.
Forgetting the $50 RAP monthly reduction per claimed dependent.
Allowing RAP payment to fall below the $10 minimum.
Using 150% of poverty for ICR when ICR uses 100%.
Using 100% of poverty for PAYE or IBR when those generally use 150%.
Ignoring the 10-year Standard payment cap under IBR or PAYE.
Projecting PAYE or ICR beyond their scheduled 2028 retirement without warning the user.
Assuming projected IDR discharge is automatically tax-free.

Practical use cases

Scenario 2: New borrower after July 1, 2026

A borrower has only Direct Loans first disbursed after July 1, 2026.

The calculator should display RAP as the applicable IDR option rather than showing legacy PAYE, ICR, or IBR choices that the borrower cannot use.

Scenario 3: Older borrower compares RAP and IBR

A borrower has eligible Direct Loans first disbursed before July 1, 2026 and satisfies IBR eligibility requirements.

The calculator can compare RAP with IBR using the borrower’s AGI, household information, and loan history rather than assuming the newer plan is automatically cheaper.

Scenario 4: Married filing separately

A married borrower files a separate federal return.

Current federal guidance generally uses individual income for RAP, IBR, and PAYE in this filing scenario, subject to each plan’s rules. The payment can therefore differ materially from joint filing.

Scenario 5: RAP payment is below monthly interest

A borrower has a large balance and a relatively low RAP payment.

Current RAP rules subsidize monthly interest not covered by the payment, preventing unpaid interest from simply accumulating under the ordinary model.

Scenario 6: Legacy PAYE expires before expected payoff

A borrower is currently eligible for PAYE and the calculated payment is attractive.

Because PAYE is scheduled to end no later than July 1, 2028, the calculator should not project the PAYE formula unchanged for another 20 years.

Planning and decision guide

Eligibility comes before payment calculation

Federal Student Aid states that IDR availability depends on loan type and when the loans were disbursed.

A calculator that asks only for income and debt balance can therefore return a mathematically correct payment for a plan the borrower cannot legally use.

July 1, 2026 is the central eligibility boundary

If all loans were disbursed on or after July 1, 2026, Federal Student Aid says RAP is the only IDR option for eligible loan types.

Older loan portfolios can retain access to additional plans depending on eligibility.

Scenario 7: Two otherwise identical borrowers receive different plan menus

Borrower A received all loans in 2025.

Borrower B received all loans in late 2026. Their incomes and balances are identical, but their IDR plan options are not.

Mixed loan portfolios require cohort analysis

Federal Student Aid notes that borrowers with mixed loan types and disbursement dates may have loans eligible for different IDR plans.

The calculator should allow loan groups rather than forcing one eligibility assumption across the entire portfolio.

RAP uses AGI directly rather than poverty-adjusted discretionary income

RAP’s base calculation uses a percentage of adjusted gross income according to the borrower’s AGI band.

This is structurally different from IBR and PAYE, which generally use discretionary income after subtracting 150% of the poverty guideline.

RAP income bands increase one percentage point at each $10,000 range

Current federal servicing guidance sets the annual base payment at $120 for AGI not above $10,000.

The percentage then rises from 1% above $10,000 through 10% for AGI above $100,000.

Scenario 8: $45,000 AGI

The borrower falls in the $40,000–$50,000 band.

The RAP base annual payment is 4% of AGI before dependent reductions.

Scenario 9: $105,000 AGI

The borrower exceeds $100,000.

The RAP base annual payment is 10% of AGI before dependent adjustments.

RAP dependent reduction is monthly

After the base annual payment is divided by 12, the monthly amount is reduced by $50 for every dependent claimed on the borrower’s federal tax return.

The payment cannot fall below $10.

Scenario 10: Three dependents reduce payment by $150

The borrower’s base RAP monthly amount is $280.

Three dependents reduce the payment to $130 rather than changing the AGI percentage itself.

RAP has a $10 minimum payment

The dependent reduction cannot reduce the required monthly amount below $10.

A calculator should therefore use a floor rather than returning zero or a negative payment.

RAP includes an unpaid-interest subsidy

Current federal servicer guidance states that when the RAP monthly payment is smaller than monthly accrued interest, the remaining unpaid interest is subsidized.

This materially changes long-term balance projections compared with a conventional low-payment loan.

Scenario 11: $200 payment, $420 monthly interest

The borrower pays the full $200 RAP amount.

Under the current RAP interest-subsidy rule, the remaining $220 of monthly interest is subsidized rather than simply being added to unpaid interest.

RAP also includes principal matching

Current servicing guidance states that when a full and on-time RAP payment does not reduce principal by at least $50, the Department provides a matching principal payment.

The matching amount is designed to ensure qualifying payments produce principal reduction, with the federal match capped at $50.

Scenario 12: Payment covers mostly interest

A $40 qualifying payment would otherwise produce no principal reduction.

The federal matching feature can add principal reduction under the current RAP rules rather than leaving the borrower’s principal completely unchanged.

RAP repayment period is 30 years

Federal Student Aid currently describes RAP discharge after 360 qualifying monthly payments when a balance remains.

That longer period can produce a low payment but should be compared with the borrower’s expected lifetime repayment horizon.

Scenario 13: Low payment, long repayment horizon

RAP cuts the borrower’s required payment substantially relative to a fixed plan.

The borrower should also see that the potential IDR repayment horizon extends to 30 years unless the loan is repaid sooner or another forgiveness program applies.

IBR uses 10% or 15% of discretionary income

Current federal servicing guidance states that IBR uses 10% or 15% depending on borrower history.

The required amount is capped so it does not exceed the applicable 10-year Standard payment.

IBR discretionary income uses 150% of poverty

For IBR, discretionary income is generally AGI minus 150% of the applicable poverty guideline for the borrower’s family size and state.

The calculator should update poverty guidelines annually rather than hardcoding one year permanently.

Scenario 14: Low income creates little discretionary income

The borrower’s AGI is only modestly above 150% of the applicable poverty guideline.

The IBR calculation therefore uses only the excess rather than applying 10% or 15% to the borrower’s entire income.

IBR repayment period can be 20 or 25 years

Federal Student Aid states that qualifying newer IBR borrowers can have a 20-year period while other borrowers can have 25 years.

Borrower-history inputs are therefore required for an accurate projection.

PAYE uses 10% of discretionary income

PAYE generally uses 10% of discretionary income and caps the payment at the applicable 10-year Standard amount.

It also carries specific new-borrower and disbursement-history requirements.

PAYE should not be offered to every pre-2026 borrower

Federal Student Aid currently requires PAYE borrowers to satisfy historical eligibility conditions, including new-borrower and later Direct Loan disbursement requirements.

The calculator needs those eligibility questions before displaying a PAYE payment.

PAYE ends no later than July 1, 2028

Federal Student Aid explicitly identifies PAYE as a transitional plan scheduled for retirement.

Do not project its current payment formula indefinitely past that date.

ICR uses a different discretionary-income definition

ICR generally defines discretionary income as AGI above 100% of the applicable poverty guideline.

Using the 150% threshold from PAYE or IBR would materially understate ICR payments.

ICR uses the lesser of two calculations

Current servicing guidance calculates ICR as the lesser of 20% of discretionary income or a 12-year fixed-payment amount adjusted according to income.

A simplified calculator that displays only the 20% side is incomplete.

ICR has a 25-year repayment period

Current federal guidance describes remaining eligible balances as potentially discharged after 25 years of qualifying repayment.

The plan is nevertheless scheduled to end no later than July 1, 2028 for continued enrollment purposes under the transition rules.

SAVE must be removed from the calculator

Current Federal Student Aid guidance states that a federal court order ended SAVE in March 2026.

Borrowers previously enrolled in SAVE are being required to select another available repayment plan.

Scenario 15: Old SEO article still says SAVE is cheapest

A borrower finds a 2024 comparison naming SAVE as the preferred IDR option.

That recommendation is outdated in 2026 because SAVE is no longer an available repayment plan.

Marriage affects income differently depending on tax filing

Federal Student Aid currently states that joint filing generally uses joint income for RAP, IBR, and PAYE.

Separate filing generally allows individual income to be used for those plans, subject to each plan’s eligibility and household rules.

Scenario 16: Same couple, two different filing assumptions

The borrower earns $55,000 and the spouse earns $90,000.

The IDR payment can differ substantially depending on whether the plan calculation uses individual or joint AGI.

Tax filing status should not be optimized from student loans alone

Filing separately can reduce some IDR payments but can also change taxes, deductions, credits, and other household outcomes.

The calculator should display the student-loan payment difference without claiming that one filing status is automatically financially superior.

Spouse federal student-loan debt can affect joint calculations

Current federal guidance states that joint-income calculations can be adjusted when both spouses have federal student loans.

A complete calculator should request the spouse’s eligible federal balance when joint filing is selected.

Current income can sometimes replace stale tax-return income

Federal Student Aid allows borrowers to provide alternative current-income documentation when prior tax information does not reasonably reflect current circumstances.

This matters after job loss, reduced hours, or other major income changes.

Scenario 17: Borrower loses job after filing taxes

The most recent return reflects $80,000 of income.

Current income is far lower. The borrower may be able to request recalculation using qualifying current-income documentation rather than waiting for the next tax year.

IDR payment must be recertified

Federal Student Aid states that borrowers generally need to update income and household information annually.

The payment is therefore not a permanent fixed amount.

Scenario 18: Income rises 5% per year

The first-year RAP or IBR payment looks low.

A multi-year calculator should increase AGI according to the selected income-growth assumption and recalculate each year.

Autorecertification can use IRS data when consent is provided

Federal Student Aid currently allows eligible borrowers to authorize access to federal tax information for automatic IDR recertification.

This is an administrative feature rather than a payment formula, but it affects how current income information is maintained.

The lowest payment can produce the longest exposure

Federal Student Aid warns that lower IDR payments can mean more interest over time on some plans because repayment lasts longer.

Payment affordability and total cost should therefore be shown together.

Use the Student Loan Calculator as the fixed-payment benchmark

The IDR result should be compared with a conventional amortizing repayment path.

Use the Student Loan Calculator to show the payment and total interest under a fixed repayment assumption.

Scenario 19: $250 IDR payment versus $600 fixed payment

The IDR plan provides substantially more immediate cash-flow relief.

The borrower should also compare repayment horizon, balance behavior, potential discharge, and tax exposure rather than choosing solely from the monthly payment.

IDR discharge after 2025 can create tax exposure

Federal Student Aid currently states that IDR discharges whose final qualifying payment occurs on or after January 1, 2026 may be taxable as income for federal purposes.

State income-tax treatment also varies.

Scenario 20: $80,000 remaining at IDR discharge

The borrower sees the projected discharge as an $80,000 benefit.

A serious long-term projection should also allow a tax scenario because the current federal tax treatment differs from the temporary 2021–2025 tax-free period.

PSLF is a separate forgiveness path

Federal Student Aid states that full and on-time IDR payments can count toward PSLF when the borrower meets the other PSLF requirements.

Do not assume a 20-, 25-, or 30-year IDR discharge horizon for a borrower who is actually pursuing qualifying PSLF.

Scenario 21: Public-service borrower

The borrower expects to remain in qualifying public-service employment.

The relevant comparison may be IDR payment and PSLF progress rather than minimizing principal repayment over 30 years.

Parent PLUS should route to a separate page

Parent PLUS has materially different eligibility and should not be forced through ordinary IDR formulas.

Use the Parent PLUS Loan Calculator for parent debt and its limited repayment pathways.

Defaulted loans are not currently eligible for IDR while in default

Federal Student Aid states that defaulted loans are not eligible for IDR plans.

Borrowers may need rehabilitation or qualifying consolidation before accessing an income-driven plan.

Scenario 22: Calculator detects default status

Instead of returning a low RAP payment immediately, the calculator should flag the eligibility problem.

The payment formula becomes relevant only after the loan is returned to an eligible status or consolidated under applicable rules.

The calculator should display plan sunset warnings prominently

PAYE and ICR results should carry a visible “scheduled to end by July 1, 2028” notice.

SAVE should not appear as an available option at all.

The strongest result is an eligibility-first comparison table

Show eligible plan, current estimated payment, payment formula, repayment period, interest treatment, possible discharge, tax warning, and sunset date.

That is more useful than ranking plans solely from lowest payment to highest.

Frequently asked questions

What is income-driven repayment?

Income-driven repayment is a federal student-loan repayment structure in which required monthly payments are based primarily on income and household-related factors rather than only on loan balance and interest rate.

What IDR plans are available in 2026?

Current federal plans include RAP, IBR, PAYE, and ICR for borrowers who meet each plan’s eligibility requirements. SAVE is no longer available.

Is SAVE still available?

No. Federal Student Aid states that SAVE ended by federal court order in March 2026 and affected borrowers must select another available plan.

What is RAP?

RAP is the Repayment Assistance Plan, a federal income-driven repayment plan available beginning July 1, 2026 for eligible Direct Loan borrowers.

Who is eligible for RAP?

Most eligible Direct Loan borrowers can use RAP, including borrowers with Direct Subsidized, Direct Unsubsidized, and graduate or professional Direct PLUS Loans. Parent PLUS debt and consolidation loans that repaid Parent PLUS debt are excluded.

If my loans were first disbursed after July 1, 2026, what IDR plan can I use?

Federal Student Aid states that when all eligible loans were disbursed on or after July 1, 2026, RAP is generally the only available income-driven repayment plan.

How is RAP payment calculated?

RAP applies an income-band percentage to AGI, divides the annual base amount by 12, subtracts $50 for each dependent claimed on the federal tax return, and applies a $10 monthly minimum.

What percentage of income does RAP use?

The percentage currently ranges from 1% to 10% of AGI depending on the income band, with a $120 annual base amount for AGI not above $10,000.

What is the RAP percentage for income above $100,000?

Current federal servicing guidance applies a 10% annual base-payment percentage to AGI above $100,000 before dependent reductions.

How much does each dependent reduce RAP payment?

Current RAP rules reduce the monthly payment by $50 for each dependent claimed on the borrower’s federal tax return.

Can RAP payment be zero?

No. Current federal guidance sets a $10 minimum monthly RAP payment.

How long is RAP repayment?

RAP currently provides for discharge of an eligible remaining balance after 30 years, or 360 qualifying monthly payments.

Does unpaid interest grow under RAP?

Current RAP rules subsidize monthly interest that remains unpaid after the borrower makes the required payment.

What is RAP principal matching?

Current servicing guidance states that if a full and on-time RAP payment does not reduce principal sufficiently, the Department can provide a matching principal payment up to $50.

What is IBR?

Income-Based Repayment is a legacy federal IDR plan that generally calculates payment as 10% or 15% of discretionary income, depending on borrower history, with a cap tied to the traditional 10-year Standard payment.

How does IBR calculate discretionary income?

IBR generally uses AGI minus 150% of the applicable federal poverty guideline for family size and location.

How long is IBR repayment?

Current federal guidance provides a 20-year repayment period for qualifying newer borrowers and 25 years for certain other IBR borrowers.

What is PAYE?

PAYE is a legacy Direct Loan IDR plan generally using 10% of discretionary income, subject to historical borrower eligibility and a 10-year Standard payment cap.

Is PAYE still available?

It remains available for eligible borrowers during the transition period, but Federal Student Aid states that PAYE will end no later than July 1, 2028.

How long is PAYE repayment?

PAYE generally provides for eligible remaining balance discharge after 20 years of qualifying repayment.

What is ICR?

Income-Contingent Repayment is a legacy Direct Loan plan that calculates payment as the lesser of 20% of discretionary income or an income-adjusted 12-year fixed-payment amount.

How is ICR discretionary income calculated?

ICR generally uses AGI above 100% of the applicable poverty guideline rather than the 150% threshold used by PAYE and IBR.

Is ICR ending?

Yes. Federal Student Aid currently states that ICR will end no later than July 1, 2028.

How long is ICR repayment?

ICR generally has a 25-year qualifying repayment period before potential remaining-balance discharge.

Is Parent PLUS eligible for RAP?

No. Parent PLUS Loans are explicitly excluded from RAP.

Can Parent PLUS be consolidated into RAP?

No under current rules. Direct Consolidation Loans that repaid Parent PLUS debt are also excluded from RAP.

Can Parent PLUS use ICR?

Some older Parent PLUS debt consolidated into a qualifying Direct Consolidation Loan before July 1, 2026 can have limited ICR eligibility. Review the Parent PLUS Loan Calculator for the parent-specific rules.

How does marriage affect RAP?

Current federal guidance generally uses joint income when married borrowers file jointly and individual income when they file separately. Joint calculations can be adjusted when the spouse also has federal student loans.

How does marriage affect IBR and PAYE?

Current federal guidance generally considers spouse income when the couple files jointly and uses individual income when the borrower files separately, subject to the applicable plan rules.

Should I file taxes separately to lower my IDR payment?

Do not decide from the student-loan payment alone. Filing status also affects taxes, credits, deductions, and other household finances.

Does IDR use gross income?

Federal repayment calculations commonly use adjusted gross income or qualifying alternative current-income documentation rather than simple gross salary.

Can my payment change every year?

Yes. IDR payments are generally recalculated as income, dependents, family size, and other applicable inputs change.

What if my income drops suddenly?

Federal Student Aid allows borrowers to request recalculation using updated income information when prior tax data no longer reasonably reflects current circumstances.

Do I need to recertify income every year?

Yes. Federal Student Aid generally requires annual IDR recertification, although eligible borrowers can authorize IRS data access for autorecertification.

Can IDR payment be higher than a standard payment?

It depends on the plan. PAYE and IBR have applicable caps tied to the traditional 10-year Standard amount, while RAP uses its own AGI-band formula.

Does IDR forgive student loans?

Some remaining eligible balances can be discharged after the required number of qualifying payments if the borrower has not already repaid the loan in full.

Is IDR forgiveness tax-free?

Not automatically. Federal Student Aid currently states that qualifying IDR discharge after January 1, 2026 may be treated as taxable income for federal purposes, and state treatment can vary.

Does RAP qualify for PSLF?

Current Federal Student Aid guidance states that qualifying full and on-time RAP payments can count toward PSLF when the borrower satisfies the other PSLF requirements.

Do PAYE, IBR, and ICR qualify for PSLF?

Qualifying payments under eligible IDR plans can count toward PSLF when all other PSLF requirements are satisfied.

Can private student loans use IDR?

No. Federal IDR plans apply to eligible federal student loans, not ordinary private student loans.

What if my loans are in default?

Federal Student Aid states that defaulted loans are not eligible for IDR while they remain in default. Rehabilitation or qualifying consolidation may restore eligibility.

Should I choose the IDR plan with the lowest monthly payment?

Not automatically. Compare repayment period, interest behavior, expected income growth, discharge, tax exposure, PSLF strategy, and plan sunset dates.

How does this calculator differ from the Student Loan Calculator?

The Student Loan Calculator models fixed amortizing repayment. This calculator applies federal income-driven formulas and eligibility rules.

Can I refinance instead of using IDR?

Private refinancing can lower rate or change payment, but federal IDR, forgiveness, and other federal protections can be lost. Compare the financial tradeoff with the Student Loan Refinance Calculator.

How accurate is an income-driven repayment calculator?

It can provide a strong estimate when loan type, disbursement dates, AGI, filing status, household inputs, current poverty guidelines, and federal plan rules are accurate. Federal Student Aid’s official repayment calculator remains the authoritative eligibility and servicing benchmark.

Sources and review

Top FAQs About Income-Driven Repayment Plans — Federal Student Aid. Accessed 2026-08-31.
Compare Repayment Plans With Our Repayment Calculator — Federal Student Aid. Accessed 2026-08-31.
How Marriage Affects Your Student Loan Payments — Federal Student Aid. Accessed 2026-08-31.
Student Loan Forgiveness and Other Ways the Government Can Help You Repay Your Loans — Federal Student Aid. Accessed 2026-08-31.
Repayment Assistance Plan (RAP) — Edfinancial Services — Federal Student Loan Servicer. Accessed 2026-08-31.
Income-Based Repayment (IBR) — Edfinancial Services — Federal Student Loan Servicer. Accessed 2026-08-31.
Pay As You Earn (PAYE) — Edfinancial Services — Federal Student Loan Servicer. Accessed 2026-08-31.
Income-Contingent Repayment (ICR) — Edfinancial Services — Federal Student Loan Servicer. Accessed 2026-08-31.

Reviewed 2026-08-31 by Dr Akawak Ejigu, DBA.

Income-based payment assumptions