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Income-Based Repayment Calculator (15% version)


This calculator compares the cost of repaying Federal student loans using the Income-Based Repayment (IBR) option and the standard repayment option, including the net present value of those payments.

The Income-Based Repayment option was proposed as part of the College Cost Reduction and Access Act of 2007 and became available on July 1, 2009.

The monthly loan payments are capped at 15% of discretionary income with forgiveness of any remaining debt (including accrued but unpaid interest) after 25 years. Discretionary income is defined as the amount by which adjusted gross income exceeds the poverty line.

The Health Care and Education Reconciliation Act of 2010 established an improved version of the income-based repayment plan for new borrowers of new loans made on or after July 1, 2014. (President Obama issued an executive order in October 2011 making the new income-based repayment plan available two years earlier. The new income-based repayment plan is now available to borrowers who have at least one federal student loan in 2012 or a later year and no loans prior to 2008.) The improved income-based repayment plan cuts the monthly loan payments by one third from 15% of discretionary income to 10% of discretionary income and accelerates loan forgiveness from 25 years to 20 years. Please use the 10% version of the income-based repayment calculator for borrowers who qualify for the improved income-based repayment plan.

Please click on the field names for help in using this calculator. For more information about discount rates, see also the discussion of net present value.

A married borrower who files a separate federal income tax return should include only his or her own loans. Public Law 110-153 modified the treatment of income for married borrowers who file separate federal income tax returns. Accordingly, this calculator will include the spouse's income only when the borrower files as married filing jointly.

Community property states generally attribute half of the earnings of a married couple to each spouse, so in those states, the AGI on the tax return of a married borrower who files a separate tax return will usually include half of the couple's combined earnings, plus any other separate income of the borrower. Therefore, depending on the spouse's earnings, the borrower's AGI on a separate return could be higher or lower than the borrower's own earnings.

Please note that the HHS Poverty Tables are typically updated in February.

Table Year:
Family Size:
Discount Rate:
State of Residence:
Income Growth Rate:
Poverty Level Change Rate:
Loan Forgiveness
Year of Forgiveness:
Tax Filing Status:
Adjusted Gross Income (AGI):
Expected Income Jump (Enter New AGI):
   Years After Graduation:
Loan Amount
Interest Rate Subsidized
Loan Amount
Interest Rate
First Loan:
Second Loan:
Loan Term:
Minimum Payment:
Interest Rate Reduction:
... after month:
Display full payment schedule? Yes No


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