Student Loan: Standard vs. IDR
Should you aggressively pay off federal student loans, or enroll in an income-driven plan and chase forgiveness? This calculator runs the full math.
Your Loan
$
%
Your Income & Household
$
%
IDR Plan & Forgiveness
%
%
Standard Monthly Payment
$510.97
Fixed for 10 years
IDR Starting Payment
$164.90
per month, year 1
Forgiveness Amount
$24,838
after 20 years
Tax Bomb
$5,464
owed when forgiven (taxable income)
Total Cost Comparison
Standard 10-Year
Monthly payment
$510.97
Payoff timeline
10 years
Total interest
$16,316
Total paid
$61,316
Tax impact
None
SAVE
Starting payment
$164.90/mo
Forgiveness at
Year 20
Amount forgiven
$24,838
Total paid
$77,362
Tax on forgiveness
$5,464
Total w/ tax bomb
$82,827
Year-by-Year Payment Comparison
| Year | Income | IDR Payment | Standard Payment | IDR Balance |
|---|---|---|---|---|
| 1 | $55,000 | $164.90/mo | $510.97/mo | $45,975 |
| 2 | $56,650 | $178.65/mo | $510.97/mo | $46,845 |
| 3 | $58,350 | $192.81/mo | $510.97/mo | $47,599 |
| 4 | $60,100 | $207.40/mo | $510.97/mo | $48,222 |
| 5 | $61,903 | $222.42/mo | $510.97/mo | $48,702 |
| 6 | $63,760 | $237.90/mo | $510.97/mo | $49,022 |
| 7 | $65,673 | $253.84/mo | $510.97/mo | $49,167 |
| 8 | $67,643 | $270.25/mo | $510.97/mo | $49,118 |
| 9 | $69,672 | $287.17/mo | $510.97/mo | $48,857 |
| 10 | $71,763 | $304.58/mo | $510.97/mo | $48,363 |
| 11 | $73,915 | $322.52/mo | $510.97/mo | $47,614 |
| 12 | $76,133 | $341.00/mo | $510.97/mo | $46,587 |
| 13 | $78,417 | $360.04/mo | $510.97/mo | $45,255 |
| 14 | $80,769 | $379.64/mo | $510.97/mo | $43,592 |
| 15 | $83,192 | $399.83/mo | $510.97/mo | $41,568 |
| 16 | $85,688 | $420.63/mo | $510.97/mo | $39,152 |
| 17 | $88,259 | $442.05/mo | $510.97/mo | $36,308 |
| 18 | $90,907 | $464.12/mo | $510.97/mo | $33,001 |
| 19 | $93,634 | $486.84/mo | $510.97/mo | $29,192 |
| 20 | $96,443 | $510.25/mo | $510.97/mo | $24,838 |
| Year 20 | Forgiveness event | $24,838 forgiven | ||
NPV of IDR total cost (present-value of all future payments at 3% discount rate): $57,935 vs. standard repayment NPV of $61,316.