Student Loan Payment Formulas:
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This calculator helps determine which student loan repayment plan you might be on by comparing standard repayment calculations with income-driven repayment (IDR) options.
The calculator uses two main formulas:
Where:
Explanation: The standard formula calculates fixed payments over the loan term, while IDR bases payments on your income.
Details: Understanding your payment structure helps identify your repayment plan and compare options for loan management strategies.
Tips: Enter your loan details for standard payment calculation. For IDR comparison, add your income and percentage (typically 10-20% of discretionary income).
Q1: How do I know which plan I'm on?
A: Compare your actual payment amount with the calculated standard and IDR payments. The closest match likely indicates your plan type.
Q2: What's the difference between standard and IDR?
A: Standard has fixed payments over 10 years. IDR payments vary with income and may qualify for forgiveness after 20-25 years.
Q3: What percentage should I use for IDR?
A: Most IDR plans use 10-20% of discretionary income. Check your specific plan (REPAYE, PAYE, IBR) for exact percentages.
Q4: Does this calculator account for loan forgiveness?
A: No, this only calculates monthly payments. Forgiveness timelines vary by plan and payment history.
Q5: Are there other repayment options?
A: Yes, graduated and extended plans exist. Contact your loan servicer for complete options.