Calculate Your Student Aid Repayment Options
Understanding Student Aid Repayment
Federal student loan repayment uses amortization formulas to calculate your monthly payments. The standard formula for fixed monthly payments is:
M = P × [r(1+r)^n] ÷ [(1+r)^n - 1]
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Example Calculation
For a $35,000 loan at 4.53% interest over 10 years:
r = 4.53% ÷ 12 = 0.003775
n = 10 × 12 = 120 payments
M = 35000 × [0.003775(1.003775)^120] ÷ [(1.003775)^120 - 1]
M = $363.28 per month
Income-Driven Repayment Formulas
Income-driven plans (REPAYE, PAYE, IBR, ICR) calculate payments as a percentage of your discretionary income:
Monthly Payment = (AGI - (Poverty Guideline × Family Size)) × Percentage ÷ 12
Where the percentage varies by plan:
- REPAYE/PAYE: 10% of discretionary income
- IBR (new borrowers): 10% of discretionary income
- IBR (old borrowers): 15% of discretionary income
- ICR: 20% of discretionary income or fixed 12-year payment, whichever is less
Loan Forgiveness Timeline
Income-driven repayment plans offer forgiveness after:
- 20 years: Undergraduate loans (REPAYE, IBR, PAYE)
- 25 years: Graduate loans (REPAYE, IBR)
- 10 years: Public Service Loan Forgiveness (PSLF) with qualifying payments
Important Disclaimer
Use these calculations as an informational basis only. Do not make financial or legal decisions based solely on this calculator's results. This calculator provides estimates based on standard formulas and current federal guidelines. Actual payments may vary based on your specific loan terms, interest rate types, and repayment plan eligibility. For official repayment calculations and plan selection, consult your loan servicer or the Federal Student Aid website at studentaid.gov.