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Student Loans • 2026

Student Loan Payment Calculator 2026

Compare every federal repayment plan side-by-side — with the correct 2026 landscape: SAVE terminated, RAP launching July 2026, and IDR forgiveness now taxable. The only calculator that shows you the honest numbers.

SAVE Terminated Mar 2026 RAP Launching Jul 2026PSLF Tax-Free AnalysisHonest Refi Tradeoff
SAVE Correctly Terminated
RAP Formula Modeled
PSLF § 108(f)(1) Tax-Free
IDR Forgiveness Taxable (ARPA Expired)
8 Protections Quantified
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How to use this calculator

  1. Add your loans

    Enter each loan with its balance and type. Rates auto-fill from the current 2025–26 federal schedule (6.39% undergrad, 7.94% grad, 8.94% Parent PLUS).

  2. Enter income info

    Add your annual income (AGI), filing status, and family size. These calculate your income-driven payments using the 2026 federal poverty guidelines.

  3. Review plan comparison

    See every federal plan side-by-side — monthly payment, total interest, timeline, forgiveness, and projected tax on forgiveness.

  4. Model PSLF

    Toggle public service employment to see your projected tax-free PSLF forgiveness at the 10-year mark, with a progress bar tracking your qualifying payments.

  5. Compare refinancing

    Enable the refinancing section to see your monthly savings versus every federal protection you permanently forfeit — so you can make an informed decision.

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Understanding your results

Mar 2026

SAVE plan terminated

Eighth Circuit court order — switch plans now

Jul 2026

RAP launches

1–10% of AGI; replaces SAVE; 30-yr forgiveness

Now taxable

IDR forgiveness

ARPA exemption expired Dec 31, 2025

The 2026 federal repayment landscape

Standard 10-year

Fixed payment, lowest total interest, no forgiveness — best if you can afford it

Graduated 10-year

Starts low, increases every 2 years — good for rising incomes

Extended 25-year

Requires $30K+ in federal loans; fixed or graduated — significantly more interest than standard

IBR New (10%/20yr)

Loans disbursed after July 1, 2014 — 10% of discretionary income; forgiveness after 20 years

IBR Old (15%/25yr)

Loans disbursed before July 1, 2014 — 15% of discretionary income; forgiveness after 25 years

PAYE (10%/20yr)

Capped at Standard payment; closing to new enrollees June 30, 2028

ICR (20%/25yr)

Only IDR option for Parent PLUS (after consolidation); closing July 1, 2028

RAP (1–10% AGI / 30yr)

Launches July 1, 2026; replaces SAVE; government pays interest + $50/mo principal match; Parent PLUS NOT eligible

SAVE — TERMINATED

Eighth Circuit court order March 9, 2026. Do not attempt to enroll. Existing borrowers must switch plans.

How income-driven repayment works

IDR plans base your monthly payment on your income and family size rather than your loan balance. The key formula uses your discretionary income — the amount of your income above a poverty line threshold:

PlanPayment formulaForgiveness
IBR New10% × (AGI − 150% FPL) / 1220 years
IBR Old15% × (AGI − 150% FPL) / 1225 years
PAYE10% × (AGI − 150% FPL) / 1220 years
ICRMin(20% × (AGI − 100% FPL) / 12, 12-yr fixed)25 years
RAPMax(min(10, floor(AGI / $10K) + 1)% × AGI / 12 − deps × $50, $10)30 years

2026 FPL reference: 1 person = $15,960; 2 people = $21,640; 3 = $27,320; 4 = $33,000 (+$5,680 each additional person, contiguous 48 states + DC).

PSLF: Tax-free forgiveness at 10 years

PSLF forgiveness is permanently tax-free — IRC § 108(f)(1)

After 120 qualifying payments on a qualifying plan while working full-time for a qualifying employer (government, 501(c)(3), or certain public service organizations), your remaining balance is forgiven with zero federal income tax owed. The ARPA exemption expiration that made IDR forgiveness taxable in 2026 has no effect on PSLF — PSLF has its own separate statutory exemption that Congress has never limited.

IDR forgiveness: Now taxable (2026)

ARPA exemption expired December 31, 2025

The American Rescue Plan Act exempted IDR forgiveness from federal income tax from 2021 through 2025. That exemption expired. Any IDR forgiveness under IBR, PAYE, ICR, or RAP received on or after January 1, 2026 is taxable as ordinary income at the federal level. At 22% federal bracket, a $40,000 forgiven balance creates an $8,800 tax bill in the year of forgiveness — sometimes called the "tax bomb." Plan accordingly. Five states (California, Indiana, Minnesota, Mississippi, North Carolina) also tax IDR forgiveness at the state level.

The refinancing tradeoff: more than just the rate

Refinancing federal loans into private loans can reduce your monthly payment and total interest — but only at the cost of permanently giving up every federal protection. Refinancing is one-way: once you go private, you cannot come back to federal protections. Evaluate these 8 protections against your expected savings before refinancing:

Income-driven repayment (IBR/PAYE/ICR/RAP) — your payment can never exceed 20% of income

PSLF eligibility — permanently lost; cannot be recovered

Payment pause during economic hardship (deferment/forbearance)

Death and disability discharge — federal loans cancelled; private loans may pursue your estate

Interest subsidies on subsidized loans during deferment

Possibility of future congressional forgiveness programs

Payment cap protection — IDR prevents runaway debt growth even at $0 income

Government interest subsidy under RAP

Why parents use this calculator

Student loan repayment decisions made in the first months out of school lock in trajectories that play out over decades. Choosing the wrong plan — or failing to know that SAVE was terminated and RAP is launching — can cost tens of thousands of dollars in unnecessary interest or lost forgiveness. This calculator gives you the correct 2026 picture.

$0 vs. $47K

PSLF vs. IDR total payment

On $60K income, $80K debt, IBR New + PSLF can forgive $47K tax-free after 10 years — vs. paying every dollar under Standard

20–30 years

IDR forgiveness timeline

IBR New forgives after 20 years; RAP after 30. Plan early — a balance forgiven in 2045 creates a large tax bill if not saved for

$8,800+

Potential tax on IDR forgiveness

A $40K forgiven balance at 22% federal rate creates an $8,800 tax bill in the forgiveness year — PSLF avoids this entirely

Real-world examples

1

Marcus — New grad, public service career

Marcus graduated with $42,000 in Direct Unsubsidized loans at 6.39%. He earns $52,000 as a city government employee (PSLF-qualifying). Under Standard 10-year, his payment is $468/month and total paid is $56,160.

Under IBR New (10% of discretionary income, family size 1), his payment drops to $234/month. After 120 PSLF-qualifying payments his remaining balance — approximately $28,000 — is forgiven completely tax-free. Total out-of-pocket: $28,080 vs. $56,160 on Standard.

Takeaway: PSLF is worth $28,000+ for Marcus. Refinancing would forfeit the entire tax-free forgiveness for a $40/month interest saving — a catastrophic trade.

2

Sarah — ICU nurse, large loan balance

Sarah is a registered nurse at a 501(c)(3) hospital earning $78,000 with $94,000 in BSN + MSN loans. She has already made 34 qualifying PSLF payments. Her IBR New payment is $460/month.

After 86 more payments, her projected remaining balance of ~$85,000 is forgiven tax-free under PSLF. If she refinanced for 1% lower rate, she would save $110/month — but forfeit $85,000 in tax-free forgiveness.

Takeaway: That $85,000 forgiveness equals 64 years of $110 monthly savings. Refinancing is the wrong choice for Sarah by a wide margin.

3

Jennifer — Parent PLUS borrower

Jennifer took out $120,000 in Parent PLUS loans at 8.94% for her daughter's education. She earns $65,000 as a public school administrator. Parent PLUS loans cannot use IBR, PAYE, or RAP — only ICR after consolidation.

After consolidating, her ICR payment is ~$730/month. She qualifies for PSLF through her public school employer. Running the PSLF projection, she could have ~$95,000 forgiven tax-free after 10 years of qualifying payments — far more valuable than any refinancing option.

Takeaway: Parent PLUS borrowers must consolidate first to access ICR. Working for a public school district unlocks PSLF — which changes the entire analysis.

4

David — High earner, aggressive paydown

David is a software engineer earning $145,000 with $35,000 in remaining undergraduate loans at 6.39%. His IBR payment is capped at Standard since his income exceeds the cap. He has no interest in PSLF and wants to pay off quickly.

He considers refinancing to a 5-year private loan at 4.99% ($660/month) versus Standard 10-year ($387/month). The refi saves ~$1,500 in total interest. Since he has no PSLF potential, stable income, and plans aggressive paydown, refinancing to 5 years is mathematically sound.

Takeaway: Refinancing makes sense only when PSLF is off the table, income is stable, and the rate advantage is clear. For David — with no forgiveness potential and high income — it is the rare case where refi is the right call.

5

Priya — PhD researcher, high-leverage PSLF

Priya finished her PhD with $98,000 in grad loans at 7.94%. She earns $58,000 as a postdoctoral researcher at a state university (PSLF-qualifying). Family size 2 (herself + dependent). IBR New payment: ~$280/month.

Over 120 PSLF payments, she pays ~$33,600 total. Her balance grows slightly despite payments (due to the 7.94% rate), reaching ~$105,000 — all of which is forgiven tax-free at 10 years.

Takeaway: High-rate + high-balance + low-income + qualifying employer = maximum PSLF leverage. Priya should not consider refinancing under any circumstances.

Common mistakes parents make

  1. Trying to enroll in the SAVE plan

    SAVE was terminated by Eighth Circuit court order on March 9, 2026. If you are currently in SAVE, you are in administrative forbearance. You must apply for a different plan (IBR, PAYE, ICR, or wait for RAP in July 2026). Do not let this forbearance period count against your IDR forgiveness timeline.

  2. Assuming IDR forgiveness is still tax-free

    The ARPA exemption that made IDR forgiveness tax-free expired December 31, 2025. Any IBR, PAYE, ICR, or RAP forgiveness received in 2026 or later is taxable ordinary income federally. PSLF forgiveness is still tax-free under a completely separate statute. This error can result in an unexpected tax bill of tens of thousands of dollars.

  3. Refinancing when pursuing PSLF

    Refinancing federal loans into private loans permanently eliminates PSLF eligibility. If you have even a 40% chance of working in public service for 10 years, the expected value of PSLF usually exceeds the interest savings from refinancing. Run the numbers before refinancing — this is typically the most expensive mistake a PSLF-eligible borrower can make.

  4. Assuming Parent PLUS loans can use IBR

    Parent PLUS loans are not eligible for IBR, PAYE, or RAP under any circumstances. The only income-driven plan for Parent PLUS is ICR — and only after consolidation into a Direct Consolidation Loan. Many parents are shocked to learn their only IDR option has a 20% rate and 25-year forgiveness timeline.

  5. Missing annual IDR income recertification

    All income-driven plans require annual recertification of your income and family size. Missing the deadline can temporarily move you to a non-IDR plan where interest accrues faster and PSLF payments may not count. Set a calendar reminder 60 days before your recertification deadline each year.

  6. Waiting until 120 payments to submit the PSLF form

    You should submit the PSLF Employment Certification Form annually — not just once at 120 payments. Annual submission lets MOHELA verify and count qualifying payments in real time, catching errors early. If you wait until payment 120 to discover an employer was not qualifying or a payment did not count, you have no recourse for the past years.

  7. Conflating PSLF qualifying payments with total payments made

    Not all payments count toward PSLF. The payment must be made on a qualifying repayment plan (Standard, IBR, PAYE, ICR, or RAP) while working for a qualifying employer on a full-time basis. Payments made in deferment, forbearance, or on a private loan do not count. Payments made on the wrong plan (e.g., graduated or extended) do not count.

  8. Thinking PAYE is going away immediately

    PAYE is closing to new enrollees on June 30, 2028 — not now. If you are eligible for PAYE today (i.e., you meet the "new borrower" definition from 2011 and have demonstrated partial financial hardship), you can still enroll until June 30, 2028. Existing PAYE borrowers can stay on the plan indefinitely.

  9. Choosing Standard 10-year when pursuing PSLF

    If you are pursuing PSLF, you want to minimize total out-of-pocket payments over 120 months — because the rest is forgiven tax-free. Standard 10-year and IBR New (when capped at Standard) produce the same PSLF outcome but IBR New can produce lower payments if your income is modest relative to your debt. Run both scenarios in this calculator to find which minimizes total paid over 120 months.

  10. Assuming RAP is just SAVE under a new name

    RAP is structurally different from SAVE in important ways. RAP uses gross AGI (not discretionary income) at 1–10%; SAVE used a lower discretionary income percentage with no minimum. RAP has a 30-year forgiveness term vs. SAVE's 20/25-year terms. RAP does not extend to Parent PLUS loans (SAVE also excluded them). RAP does include a $50/month government principal match and full interest subsidy, similar to SAVE. Model both separately — for some income levels, IBR New will produce lower payments than RAP.

  11. Applying a flat 22% tax estimate to forgiveness without state tax

    The calculator shows a 22% federal bracket estimate for IDR forgiveness. This is a rough approximation. Your actual marginal rate depends on total income in the forgiveness year. Additionally, five states tax IDR forgiveness: California, Indiana, Minnesota, Mississippi, and North Carolina. Add your state's marginal rate to the federal estimate for a more accurate tax picture.

  12. Overlooking the Extended 25-year plan for large-balance borrowers

    For borrowers with $50,000+ in federal loans who do not qualify for meaningful IDR savings (e.g., high income, no public service plans), the Extended 25-year plan can significantly reduce monthly payments vs. Standard — without the income paperwork of IDR. The total interest is much higher than Standard, but cash flow relief can be meaningful for high-balance, income-constrained borrowers who do not qualify for forgiveness programs.

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