1. What is Student Loan Repayment?

Student loan repayment involves paying back borrowed money for education plus interest. Different repayment plans are available to accommodate various financial situations, including standard, graduated, and income-driven repayment (IDR) plans.

2. How Does the Calculator Work?

The calculator uses two main formulas:

For standard and graduated repayment plans, where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

For income-driven repayment (IDR) plans, where:

• \( Income \) — Annual income (USD)
• \( percentage \) — IDR percentage (typically 10-20% as decimal)

3. Types of Repayment Plans

Standard Plan: Fixed payments for up to 10 years (minimum $50/month).
Graduated Plan: Payments start low and increase every 2 years (10-year term).
Income-Driven Plans: Payments based on income and family size (20-25 year terms).

4. Using the Calculator

Tips: For standard/graduated plans, enter principal, interest rate, and term. For IDR plans, enter income and percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between standard and graduated plans?
A: Standard has equal payments; graduated starts lower and increases every 2 years.

Q2: How is IDR payment calculated?
A: Typically 10-20% of discretionary income divided by 12 months.

Q3: Which plan pays off loans fastest?
A: Standard 10-year plan, but payments are higher than other options.

Q4: Can I switch repayment plans?
A: Yes, you can change plans once per year at no cost.

Q5: Are there loan forgiveness options?
A: Yes, after 20-25 years of IDR payments or 10 years of public service.