How much is the standard monthly payment on the average student loan?

The average federal student loan balance is $37,850. On the standard 10-year repayment plan at the current undergraduate rate of 6.39%, the monthly payment is about $428. Total interest over the life of the loan is about $13,510.

What is the student loan interest deduction?

You can deduct up to $2,500 of student loan interest per year from your taxable income, even if you don't itemize. This is an above-the-line deduction that reduces your AGI. For tax year 2025, the phase-out range is $85,000-$100,000 (single) and $170,000-$200,000 (MFJ). For tax year 2026, it is $85,000-$100,000 (single) and $175,000-$205,000 (MFJ).

How does Income-Based Repayment (IBR) work?

IBR caps your monthly payment at 10% of your discretionary income (income above 150% of the federal poverty guideline). For new borrowers, any remaining balance is forgiven after 20 years (undergraduate) or 25 years (graduate). Payments are recalculated annually based on income and family size.

What is the new RAP plan?

The Repayment Assistance Plan (RAP) replaces the defunct SAVE plan starting July 1, 2026. Payments range from 1-10% of your AGI with a $10/month minimum. Unlike IBR, RAP uses your full adjusted gross income rather than discretionary income. All 7.5 million former SAVE borrowers must select a new plan by September 30, 2026.

Which repayment plan costs the least total?

The standard 10-year plan typically costs the least in total because you pay it off fastest. Income-driven plans have lower monthly payments but often cost more over time due to extended repayment periods and interest capitalization. The exception is if you qualify for forgiveness — then IBR or RAP may cost less total.

What happens to my forgiven student loan balance?

As of January 1, 2026, balances forgiven through IDR (after 20-25 years) are treated as taxable income again because ARPA's temporary exclusion expired on December 31, 2025. A $50,000 forgiven balance could add $10,000+ to your tax bill. This is sometimes called the "tax bomb." PSLF forgiveness is tax-free.

How does household size affect IDR payments?

IDR plans calculate discretionary income as your income minus 150% of the federal poverty guideline. The poverty guideline increases with household size ($15,650 for 1 person, plus $5,580 per additional person in 2026). A family of 4 has a much higher protected income threshold, resulting in lower payments.

What are the current federal student loan interest rates?

For the 2025-2026 academic year (disbursed July 1, 2025 through June 30, 2026): undergraduate Direct Loans are 6.39%, graduate Direct Loans are 7.94%, and Parent PLUS loans are 8.94%. These rates are fixed for the life of the loan but change annually for new loans based on the 10-year Treasury yield.

Is PSLF still available in 2026?

Yes. Public Service Loan Forgiveness remains federal law, though the Trump administration has slowed processing for a "program integrity review." PSLF forgives your remaining balance after 120 qualifying payments while working for a government or nonprofit employer. PSLF forgiveness is tax-free.

Should I refinance my student loans?

Refinancing can lower your interest rate if you have good credit, but you lose access to IDR plans, PSLF, and forgiveness programs. Only consider refinancing if you won't need income-driven plans, don't work in public service, and can secure a rate at least 1-2% lower than your current rate.

Can I deduct student loan interest if I'm married?

Yes, but you must file jointly (married filing separately cannot claim the deduction). The phase-out range for married filing jointly is $170,000-$200,000 for tax year 2025 and $175,000-$205,000 for tax year 2026. Each spouse can deduct interest on their own loans, but the combined deduction is still capped at $2,500 total.

How does this calculator handle negative amortization?

On income-driven plans, if your payment is less than the accruing interest, your balance grows (negative amortization). Our calculator simulates this month-by-month with 3% annual income growth. The forgiven amount shown includes any balance growth from unpaid interest over the repayment period.

How much is the standard monthly payment on the average student loan?

The average federal student loan balance is $37,850. On the standard 10-year repayment plan at the current undergraduate rate of 6.39%, the monthly payment is about $428. Total interest over the life of the loan is about $13,510.

What is the student loan interest deduction?

You can deduct up to $2,500 of student loan interest per year from your taxable income, even if you don't itemize. This is an above-the-line deduction that reduces your AGI. For tax year 2025, the phase-out range is $85,000-$100,000 (single) and $170,000-$200,000 (MFJ). For tax year 2026, it is $85,000-$100,000 (single) and $175,000-$205,000 (MFJ).

How does Income-Based Repayment (IBR) work?

IBR caps your monthly payment at 10% of your discretionary income (income above 150% of the federal poverty guideline). For new borrowers, any remaining balance is forgiven after 20 years (undergraduate) or 25 years (graduate). Payments are recalculated annually based on income and family size.

What is the new RAP plan?

The Repayment Assistance Plan (RAP) replaces the defunct SAVE plan starting July 1, 2026. Payments range from 1-10% of your AGI with a $10/month minimum. Unlike IBR, RAP uses your full adjusted gross income rather than discretionary income. All 7.5 million former SAVE borrowers must select a new plan by September 30, 2026.

Which repayment plan costs the least total?

The standard 10-year plan typically costs the least in total because you pay it off fastest. Income-driven plans have lower monthly payments but often cost more over time due to extended repayment periods and interest capitalization. The exception is if you qualify for forgiveness — then IBR or RAP may cost less total.

What happens to my forgiven student loan balance?

As of January 1, 2026, balances forgiven through IDR (after 20-25 years) are treated as taxable income again because ARPA's temporary exclusion expired on December 31, 2025. A $50,000 forgiven balance could add $10,000+ to your tax bill. This is sometimes called the "tax bomb." PSLF forgiveness is tax-free.

How does household size affect IDR payments?

IDR plans calculate discretionary income as your income minus 150% of the federal poverty guideline. The poverty guideline increases with household size ($15,650 for 1 person, plus $5,580 per additional person in 2026). A family of 4 has a much higher protected income threshold, resulting in lower payments.

What are the current federal student loan interest rates?

For the 2025-2026 academic year (disbursed July 1, 2025 through June 30, 2026): undergraduate Direct Loans are 6.39%, graduate Direct Loans are 7.94%, and Parent PLUS loans are 8.94%. These rates are fixed for the life of the loan but change annually for new loans based on the 10-year Treasury yield.

Is PSLF still available in 2026?

Yes. Public Service Loan Forgiveness remains federal law, though the Trump administration has slowed processing for a "program integrity review." PSLF forgives your remaining balance after 120 qualifying payments while working for a government or nonprofit employer. PSLF forgiveness is tax-free.

Should I refinance my student loans?

Refinancing can lower your interest rate if you have good credit, but you lose access to IDR plans, PSLF, and forgiveness programs. Only consider refinancing if you won't need income-driven plans, don't work in public service, and can secure a rate at least 1-2% lower than your current rate.

Can I deduct student loan interest if I'm married?

Yes, but you must file jointly (married filing separately cannot claim the deduction). The phase-out range for married filing jointly is $170,000-$200,000 for tax year 2025 and $175,000-$205,000 for tax year 2026. Each spouse can deduct interest on their own loans, but the combined deduction is still capped at $2,500 total.

How does this calculator handle negative amortization?

On income-driven plans, if your payment is less than the accruing interest, your balance grows (negative amortization). Our calculator simulates this month-by-month with 3% annual income growth. The forgiven amount shown includes any balance growth from unpaid interest over the repayment period.

Student Loan Repayment Calculator

The average borrower owes $37,850 in federal student loans. On the standard 10-year plan at 6.39%, that’s $428/month and $13,510 in total interest. Income-driven plans can cut your monthly payment by 50% or more — but you may pay more in interest over time, or face a tax bill on the forgiven balance.

David Duley· Founder & CEO

Published March 29, 2026

Reviewed by Jon Ragsdale for factual accuracy, source quality, and clarity.

Student loan repayment is no longer just a math problem. It is a policy problem too. Monthly payments, forgiveness timelines, tax treatment, collection rules, and plan availability have all changed, which means the best repayment path depends partly on what lawmakers and agencies do next.

This calculator helps you compare the cash-flow tradeoffs. The goal is not just to find the lowest monthly payment. It is to understand what each repayment structure may cost you over time under the rules that currently exist.

Compare your student loan repayment options side-by-side. See your monthly payment, total cost, and potential forgiveness under Standard, IBR, ICR, and the new RAP plan — plus your student loan interest deduction.

Shown federal rates (6.39% / 7.94% / 8.94%) apply to loans disbursed July 1, 2025 through June 30, 2026. Use custom rate if your loan was originated in a different period.

How PRIA Approached This

This calculator was written by David Duley and reviewed by Jon Ragsdale. PRIA treats tools like this as household policy-risk explainers, not generic widgets. We separate current law from proposals when relevant, translate public rules into plain English, and present the output as an educational estimate rather than personalized advice.

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Frequently Asked Questions

How much is the standard monthly payment on the average student loan?: The average federal student loan balance is $37,850. On the standard 10-year repayment plan at the current undergraduate rate of 6.39%, the monthly payment is about $428. Total interest over the life of the loan is about $13,510.
What is the student loan interest deduction?: You can deduct up to $2,500 of student loan interest per year from your taxable income, even if you don't itemize. This is an above-the-line deduction that reduces your AGI. For tax year 2025, the phase-out range is $85,000-$100,000 (single) and $170,000-$200,000 (MFJ). For tax year 2026, it is $85,000-$100,000 (single) and $175,000-$205,000 (MFJ).
How does Income-Based Repayment (IBR) work?: IBR caps your monthly payment at 10% of your discretionary income (income above 150% of the federal poverty guideline). For new borrowers, any remaining balance is forgiven after 20 years (undergraduate) or 25 years (graduate). Payments are recalculated annually based on income and family size.
What is the new RAP plan?: The Repayment Assistance Plan (RAP) replaces the defunct SAVE plan starting July 1, 2026. Payments range from 1-10% of your AGI with a $10/month minimum. Unlike IBR, RAP uses your full adjusted gross income rather than discretionary income. All 7.5 million former SAVE borrowers must select a new plan by September 30, 2026.
Which repayment plan costs the least total?: The standard 10-year plan typically costs the least in total because you pay it off fastest. Income-driven plans have lower monthly payments but often cost more over time due to extended repayment periods and interest capitalization. The exception is if you qualify for forgiveness — then IBR or RAP may cost less total.
What happens to my forgiven student loan balance?: As of January 1, 2026, balances forgiven through IDR (after 20-25 years) are treated as taxable income again because ARPA's temporary exclusion expired on December 31, 2025. A $50,000 forgiven balance could add $10,000+ to your tax bill. This is sometimes called the "tax bomb." PSLF forgiveness is tax-free.
How does household size affect IDR payments?: IDR plans calculate discretionary income as your income minus 150% of the federal poverty guideline. The poverty guideline increases with household size ($15,650 for 1 person, plus $5,580 per additional person in 2026). A family of 4 has a much higher protected income threshold, resulting in lower payments.
What are the current federal student loan interest rates?: For the 2025-2026 academic year (disbursed July 1, 2025 through June 30, 2026): undergraduate Direct Loans are 6.39%, graduate Direct Loans are 7.94%, and Parent PLUS loans are 8.94%. These rates are fixed for the life of the loan but change annually for new loans based on the 10-year Treasury yield.
Is PSLF still available in 2026?: Yes. Public Service Loan Forgiveness remains federal law, though the Trump administration has slowed processing for a "program integrity review." PSLF forgives your remaining balance after 120 qualifying payments while working for a government or nonprofit employer. PSLF forgiveness is tax-free.
Should I refinance my student loans?: Refinancing can lower your interest rate if you have good credit, but you lose access to IDR plans, PSLF, and forgiveness programs. Only consider refinancing if you won't need income-driven plans, don't work in public service, and can secure a rate at least 1-2% lower than your current rate.
Can I deduct student loan interest if I'm married?: Yes, but you must file jointly (married filing separately cannot claim the deduction). The phase-out range for married filing jointly is $170,000-$200,000 for tax year 2025 and $175,000-$205,000 for tax year 2026. Each spouse can deduct interest on their own loans, but the combined deduction is still capped at $2,500 total.
How does this calculator handle negative amortization?: On income-driven plans, if your payment is less than the accruing interest, your balance grows (negative amortization). Our calculator simulates this month-by-month with 3% annual income growth. The forgiven amount shown includes any balance growth from unpaid interest over the repayment period.

Student loan policy is changing fast. See how the new repayment rules affect your monthly payment.

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Student Loan Repayment Calculator: The Short Answer

Lower monthly payments do not always mean lower total cost. Standard repayment usually minimizes total interest, while income-driven plans can create more breathing room now but extend the timeline, increase interest paid, or create a future tax bill if forgiveness is taxable.

Your Repayment Options in 2026

The student loan landscape has changed dramatically. The SAVE plan is dead, collections have resumed, and a new Repayment Assistance Plan (RAP) launches July 1, 2026. Here’s what you need to know about each option:

Standard Repayment (10-Year Fixed)

Fixed monthly payments over 10 years. You pay the least total interest, but monthly payments are the highest. This is the default plan if you don’t choose another option.

IBR (Income-Based Repayment)

Payments capped at 10% of discretionary income (15% for borrowers who took out loans before July 2014). Remaining balance forgiven after 20 years (undergraduate) or 25 years (graduate). Monthly payments adjust annually based on your income and family size.

ICR (Income-Contingent Repayment)

Payments set at 20% of discretionary income or what you’d pay on a 12-year fixed plan, whichever is lower. Forgiveness after 25 years. This is currently the only IDR plan available for Parent PLUS loans (after consolidation).

RAP (Repayment Assistance Plan) — New for 2026

The SAVE plan’s replacement, launching July 1, 2026. Payments range from 1–10% of AGI with a $10/month minimum. Unlike IBR and ICR, RAP uses your full AGI rather than discretionary income. RAP also includes a $50/month reduction per dependent, an anti-negative-amortization interest subsidy, and up to a $50/month principal match. Parent PLUS loans are not eligible for RAP. See our SAVE Plan Ending guide for the full transition details.

The Student Loan Interest Deduction

You can deduct up to $2,500 of student loan interest per year from your taxable income, even if you take the standard deduction. This is an “above-the-line” deduction that directly reduces your adjusted gross income. The deduction phases out at:

Tax year 2025: Single $85,000–$100,000; MFJ $170,000–$200,000 MAGI
Tax year 2026: Single $85,000–$100,000; MFJ $175,000–$205,000 MAGI

At a 22% marginal tax rate, the full $2,500 deduction saves you $550 per year. Over a 10-year repayment period, that’s $3,000–$5,000 in tax savings depending on how much interest you pay each year.

Policy risk note: this deduction may be narrowed or eliminated in future tax legislation, so monitor Congress if you are relying on it in long-term repayment planning.

The IDR Forgiveness Tax Bomb

As of January 1, 2026, balances forgiven through IDR are again treated as taxable income for federal tax purposes (the temporary ARPA tax-free treatment expired on December 31, 2025). If your $37,850 balance grows to $60,000 through negative amortization and is forgiven, you could owe $10,000–$15,000 in federal taxes in a single year. PSLF forgiveness, by contrast, is tax-free.

OBBBA Student Loan Changes Beyond RAP

RAP is only one part of the post-OBBBA shift. For new borrowing after July 1, 2026, Grad PLUS is eliminated and replaced by revised Direct Unsubsidized caps, and Parent PLUS borrowing is capped. Parent PLUS borrowers also face a key servicing timeline: borrowers who do not consolidate before July 1, 2026 may lose access to income-based repayment options. If you hold Parent PLUS debt, this deadline is high priority.

This calculator focuses on repayment planning, not new borrowing limits. Use the related analysis below for broader OBBBA student loan impacts.

Why This Is A Policy-Risk Issue

Borrowers are not just managing debt. They are managing a moving framework. A repayment strategy that looked rational under SAVE may look very different under RAP or under resumed collections. That is why student loans deserve active monitoring instead of a one-time repayment choice.

If your budget is tight, policy changes can matter as much as your interest rate. A new formula, a restart of collections, or a shift in forgiveness rules can change the best path forward quickly.

Related Analysis

Student Loan Forgiveness & Repayment 2026 — Complete guide to PSLF, IDR forgiveness, RAP, and OBBBA-driven student loan changes
The SAVE Plan Is Dead: What to Do Now — Timeline, deadlines, and the RAP replacement plan
Can Student Loans Garnish Social Security? — How defaulted loans affect your retirement benefits