Student Loan IDR Comparison — IBR vs PAYE vs ICR Plans

Compare the Income-Driven Repayment plans side by side: IBR, PAYE and ICR (SAVE ended in March 2026). See monthly payments, total cost, and forgiveness. Free, instant results.

By Konstantin Iakovlev · Updated September 2026 · Source: StudentAid.gov — Income-Driven Repayment Plans

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Note: A federal court order of March 10, 2026 ended the SAVE plan. SAVE borrowers must choose IBR, PAYE, ICR or RAP within 90 days of their servicer’s notice or be placed on a standard plan. Visit StudentAid.gov for guidance. This calculator covers IBR, PAYE, and ICR plans.

Lowest Monthly Payment

IBR: $175.50

Lowest Total Cost

ICR: $67,073.16

Largest Forgiveness

IBR: $7,835.16

IDR Plan Comparison

IBR / PAYE / ICR / Standard
Monthly Payment (Year 1)$175.50 / $175.50 / $484.00 / $565.20
Monthly Payment (Year 10)$382.25 / $382.25 / $484.00 / $565.20
Total Amount Paid$95,105.49 / $95,105.49 / $67,073.16 / $67,823.90
Total Interest Paid$52,940.64 / $52,940.64 / $17,073.16 / $17,823.90
Forgiveness Amount$7,835.16 / $7,835.16 / $0.00 / $0.00
Repayment Period20 yrs / 20 yrs / 9 yrs / 10 yrs
"Tax Bomb" at Forgiveness$1,723.73 / $1,723.73 / $0.00 / $0.00

Year: IBR

YearIncome / Monthly Payment / Total / Balance
Year 1$45,000.00 / $175.50 / $2,106.00 / $51,126.67
Year 2$47,250.00 / $194.25 / $2,331.00 / $52,095.88
Year 3$49,612.50 / $213.94 / $2,567.25 / $52,885.66
Year 4$52,093.13 / $234.61 / $2,815.31 / $53,472.04
Year 5$54,697.78 / $256.31 / $3,075.78 / $53,828.81
Year 10$69,809.77 / $382.25 / $4,586.98 / $51,076.03
Year 15$89,096.92 / $542.97 / $6,515.69 / $37,051.19
Year 20$113,712.76 / $565.20 / $6,782.39 / $11,138.84

Use the Student Loan IDR Comparison — IBR vs PAYE vs ICR Plans above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Income-Driven Repayment (IDR) plans cap federal student loan payments at a percentage of your discretionary income rather than basing them on the loan balance. Discretionary income is defined as the difference between your adjusted gross income (AGI) and a percentage of the federal poverty guideline for your family size and state. The IDR plans open today are Income-Based Repayment (IBR), which caps payments at 10% of discretionary income for borrowers who first borrowed on or after July 1, 2014 or 15% for earlier borrowers; Pay As You Earn (PAYE), at 10%; Income-Contingent Repayment (ICR), at 20% or a fixed 12-year payment amount, whichever is less; and the Repayment Assistance Plan (RAP), which opened on July 1, 2026 and charges 1% to 10% of total AGI instead of discretionary income. The SAVE plan ended after a federal court order of March 10, 2026, and the One Big Beautiful Bill Act eliminates PAYE and ICR no later than July 1, 2028. A borrower with any loan first disbursed on or after July 1, 2026 can use only RAP or the Tiered Standard Plan. This calculator compares IBR, PAYE and ICR with the 10-year standard plan.

Under most IDR plans, discretionary income is calculated as AGI minus 150% of the federal poverty guideline. For 2026, the poverty guideline for a single person in the 48 contiguous states and DC is $15,960, so 150% of it is $23,940. If your AGI is $50,000, your discretionary income is $50,000 - $23,940 = $26,060, and your annual payment under a 10% plan would be $2,606, or about $217/month. If your income is low enough that the calculated payment is $0, you make no payment but the month still counts toward forgiveness.

The forgiveness timeline depends on the plan and loan type. Under IBR for borrowers who first borrowed on or after July 1, 2014, and under PAYE, remaining balances are forgiven after 20 years of qualifying payments. IBR for earlier borrowers and ICR require 25 years, and RAP 30 years. Public Service Loan Forgiveness (PSLF) offers forgiveness after just 10 years (120 qualifying payments) for borrowers working full-time for a qualifying government or nonprofit employer. PSLF forgiveness is tax-free. The American Rescue Plan Act excluded student loan discharges made in 2021 through 2025 from federal income; that exclusion ended on December 31, 2025, so IDR forgiveness granted from 2026 on is generally taxable federal income, which is why the calculator shows an estimated "tax bomb" at an assumed 22% rate.

Choosing the right IDR plan depends on your income trajectory, loan balance, and career plans. If you expect your income to rise significantly, IBR and PAYE both cap the payment at the standard 10-year amount, so a rising income cannot push it above that; PAYE, though, ends no later than July 1, 2028. If you work in public service, entering any IDR plan and pursuing PSLF after 10 years is often the most cost-effective strategy. For high-balance borrowers with moderate incomes, the total amount repaid under IDR plus eventual forgiveness is frequently less than what they would pay under the standard 10-year plan, even accounting for the additional interest that accrues during the extended repayment period.

Example: $65,000 loan balance, $48,000 AGI, single, IBR (new borrower)

  1. 1 Step 1: Calculate discretionary income. AGI of $48,000 minus 150% of the 2026 poverty guideline for one person ($15,960 × 1.5 = $23,940) = $24,060 of discretionary income.
  2. 2 Step 2: Annual IBR payment = 10% of discretionary income = $2,406/year, or $200.50/month. Compare that with the standard 10-year payment on $65,000 at 5.5% interest: $705.42/month, or $84,650.50 in total.
  3. 3 Step 3: With 3% income growth, the payment rises each year. Year 5 AGI = $48,000 × 1.03^4 = $54,024.42, discretionary income $30,084.42, payment $250.70/month. Year 10 AGI = $62,629.11, discretionary income $38,689.11, payment $322.41/month. The calculator keeps the poverty guideline at its 2026 level, so real payments would rise a little more slowly.
  4. 4 Step 4: The early payments are below the $297.92 of interest that accrues each month on $65,000 at 5.5%, so unpaid interest builds up in the first years. Over 20 years the IBR payments total $81,097.80, less than the $84,650.50 standard total, and whatever is left after year 20 is forgiven. Because IDR forgiveness is taxable again from 2026, the calculator adds an estimated tax on the forgiven amount at an assumed 22% rate.
  5. 5 Step 5: The calculator does not model PSLF, but the same schedule shows what it would mean: a public-service borrower would pay $31,086.62 over the first 10 years (120 payments) and then have the remaining balance forgiven tax-free.

Source: StudentAid.gov — Income-Driven Repayment Plans · Last updated: September 2026

Frequently Asked Questions

What income-driven repayment plans are available?
StudentAid.gov lists four: the Repayment Assistance Plan (RAP), which charges 1% to 10% of total AGI, and Income-Based Repayment (IBR), Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR), which charge 10% to 20% of discretionary income. The SAVE plan ended after a March 10, 2026 court order, PAYE and ICR will be eliminated no later than July 1, 2028, and anyone with a loan first disbursed on or after July 1, 2026 can use only RAP or the Tiered Standard Plan.
How is discretionary income calculated for IDR plans?
For most IDR plans, discretionary income is your adjusted gross income (AGI) minus 150% of the federal poverty guideline for your family size and state. For 2026, 150% of the poverty guideline for a single person in the contiguous U.S. is $23,940 (150% of $15,960). If your AGI is $50,000, your discretionary income is $26,060.
When is the remaining balance forgiven under IDR?
Under IBR for borrowers who first borrowed on or after July 1, 2014, and under PAYE, remaining balances are forgiven after 20 years of qualifying payments. IBR for earlier borrowers and ICR require 25 years, and RAP 30 years. PSLF provides forgiveness after 10 years for public service workers.
Is student loan forgiveness taxable?
Public Service Loan Forgiveness (PSLF) is always tax-free at the federal level. The American Rescue Plan Act made student loan discharges in 2021 through 2025 tax-free; that exclusion ended on December 31, 2025, so IDR forgiveness granted from January 1, 2026 is generally taxable federal income. Discharges for death or total and permanent disability remain excluded. State tax treatment varies.
What is Public Service Loan Forgiveness (PSLF)?
PSLF forgives remaining federal Direct Loan balances after 120 qualifying monthly payments (10 years) made while working full-time for a qualifying employer (government agencies, 501(c)(3) nonprofits, and certain other public service organizations). Payments must be made under an IDR plan or the 10-year standard plan. PSLF forgiveness is tax-free.
Can my IDR payment be $0 per month?
Under IBR and PAYE, yes: if your discretionary income is zero or negative (your AGI is at or below 150% of the poverty line), your payment is $0. RAP is the exception, with a $10 minimum payment. Months with a $0 payment still count toward the 20-25 year forgiveness timeline and toward PSLF's 120-payment requirement. You must recertify your income annually to maintain a $0 payment.
Should I use the standard repayment plan or an IDR plan?
The standard 10-year plan charges the least total interest but has the highest monthly payments. IDR plans lower monthly payments but extend the timeline, causing more interest to accrue. IDR makes sense if your balance is high relative to your income, if you qualify for PSLF, or if you need immediate cash-flow relief. If you can afford the standard payment, it is typically the cheapest option.
How do I recertify my income for IDR?
You must recertify your income and family size annually with your loan servicer. You can do this at StudentAid.gov or through your servicer, usually by providing your most recent tax return or pay stubs. If you miss the deadline, your payment may temporarily increase to the standard plan amount, and any unpaid interest may capitalize.

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