Income Driven Repayment Plan Calculator

Your monthly payment amount will generally be 10 or 15 percent of your discretionary income depending on your loans disbursement dates.

Income driven repayment plan calculator. The mistake is that they compare the cost displayed under the total paid column to the total cost of a pay off strategy a standard 10 year or 25 year repayment plan. Federal student loan borrowers pay a percentage of their discretionary income 10 15 or 20 depending on the specific income driven repayment plan you choose. Personal info adjusted gross income enter the amount of your total taxable income which is what is recorded on irs form 1040 1040a or 1040ez. Our student loan income based repayment ibr calculator helps you understand how much money you ll pay under the ibr plan offered under the government s income driven repayment idr payment plan.

Our income based repayment calculator shows you what your monthly payment and total payment will be under the standard repayment plan and student loan income based repayment. Your payment amount is based on your adjusted gross income family size and total student loan debt. It s based on the idea that how much you pay each month should be based on your ability to pay not how much you owe. There are three other income driven repayment options offered by the federal government.

Like the rest of the plans it sets your monthly payments based on your income family size and other financial factors. These plans are typically better options for borrowers who are eligible as they have lower monthly payment caps 10 15 as well as shorter repayment. This income based repayment calculator reveals what your monthly payments would be if you put your student loans on ibr. Check out income based repayment ibr pay as you earn paye and income contingent repayment icr.

Fill out your information in the income based repayment calculator to see what your federal student loan payments could be. This repayment plan known as ibr is for both ffelp and direct loans. Income based repayment ibr is a repayment plan available to federal student loan borrowers. When applying for ibr the government looks at your income family size and state of residence to calculate your monthly payments.

Discretionary income is what you have left after taxes and an allowance for necessary spending such as food and shelter. This is where the government s calculator stops and this is why so many people make the mistake of going on income driven repayment plans to begin with. Check out this calculator to see how it works. Of the 4 available income driven repayment plans available income based repayment is the most widely used.