If you’re struggling to afford federal student loan payments, an income-driven repayment plan may lower them. Your new monthly payment will be capped at 10%, 15% or 20% of your discretionary income, depending on which of the four income-driven plans you choose.
Use this calculator to estimate what your payment will be on various income-driven repayment plans. If your income is low enough, your payment may be reduced to $0 a month.
Apply for income-driven repayment on the Federal Student Aid website.
How is discretionary income calculated?
To calculate discretionary income, the Department of Education:
- Finds the correct federal poverty guideline for your location and family size
- Multiplies that number by 1.5
- Subtracts that number from your adjusted gross income
Adjusted gross income is the amount you pay taxes on. You’ll find it on your most recent tax return on Line 37 if you filed Form 1040; Line 21 on 1040A; or Line 4 on Form 1040-EZ.
Other student loan calculators
Student loan refinance calculator: Use this calculator to compare your current loan payment or multiple payments with a refinanced student loan.
Student loan consolidation calculator: Use this calculator to compare your payments under federal loan consolidation plans with your current bills.
Weighted average interest rate calculator: Use this calculator to determine what the average rate on your current loans is.
Student loan calculator: Use this calculator to determine the monthly payment on new student loans you take out, federal or private.