US Student Loan Repayment Guide

Standard vs IDR Plans

Standard Repayment: 10 years, fixed payment, lowest total interest. Best when income comfortably covers payment. Income-Driven Repayment (IDR): payment capped at 10-15% of discretionary income, forgiveness after 20-25 years (taxable forgiveness as of 2024). REPAYE/SAVE replaced by new SAVE rules — exact program subject to ongoing legal challenges in 2025. PAYE: 10% of discretionary income, 20-year forgiveness. IBR: 10-15% of discretionary income, 20-25 year forgiveness. Public Service Loan Forgi

PSLF — Free Money for Public Sector

Public Service Loan Forgiveness is the single best deal in US student loans. Requirements: 120 qualifying payments (10 years) on an IDR plan; employed full-time by qualifying employer (federal/state/local government, 501(c)(3) nonprofit, AmeriCorps, Peace Corps, full-time military). Strategy: minimize payments on IDR (lower income years count); maximize forgiveness amount. A teacher earning $50,000 with $80,000 in loans on SAVE plan might pay $200-300/month for 10 years = $30,000 paid; remaining

When to Refinance to Private

Refinancing federal loans to private is PERMANENT — you lose access to IDR, PSLF, forbearance, and federal forgiveness programs. Only refinance if: you're certain you won't need IDR or PSLF; you can secure a meaningfully lower rate (often 2%+ lower); high income comfortably handles payments. Best for: high-earning professionals (doctors after residency, engineers, lawyers in private practice) with high loan balances who won't pursue PSLF. SoFi, Earnest, Laurel Road, Splash are major refinance le

The 'Avalanche' vs 'Snowball' Method

If you have multiple loans: Avalanche = pay minimums on all loans, throw extra at HIGHEST interest rate loan first. Mathematically optimal. Snowball = pay minimums on all loans, throw extra at SMALLEST balance loan first. Psychologically motivating (quick wins). For $45,000 across 5 loans, avalanche typically saves $500-2,000 vs snowball over the payoff period. Avalanche wins financially; snowball wins for those needing motivation to stick with the plan. Whichever you choose, the key behavior is

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

US Student Loan Payment Calculator (IDR + Standard)

Results update automatically as you type

Enter values above to calculate