“Note: The Education Department has directed student loan servicers to stop processing new income-driven repayment applications, including people applying for IBR. This pause is expected to last at least until the end of April 2025.”
IBR Calculator: Estimate Student Loan Repayment
If you’re counting on the SAVE Plan to keep your payments low, you need a backup plan because there’s a real chance it won’t last because of the SAVE Plan block.
Congress, not an executive order, created the income-based repayment (IBR) plan. That means no court ruling or new administration can wipe it out overnight. If the SAVE Plan disappears, IBR will still be here to keep your payments manageable.
Along with the income-contingent repayment plan (ICR), IBR is one of the original income-driven repayment plans.
Want to see what your payments would look like under IBR? Use our Income-Based Repayment Calculator to get the numbers.
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How to Calculate IBR Payment (2025)
Your IBR payment is either 10% or 15% of your discretionary income, depending on when you first took out loans:
New borrowers (on or after July 1, 2014) will pay 10% of discretionary income
Older borrowers (before July 1, 2014) will pay 15% of discretionary income
Discretionary income is your Adjusted Gross Income (AGI) minus 150% of the poverty guideline for your household size and state. Here are some sample calculations:
Borrower A (new IBR, 10%): Let’s say you earn $60K/year, and your discretionary income is $25K. With the new IBR rule, your monthly payment is $208.
Borrower B (old IBR, 15%): Using the same example above, your monthly payment with the old IBR rule is $312.50.
Your exact payment depends on your loan balance, family size, and state of residence. Not a fan of math? Our IBR Calculator does it for you.
IBR Eligibility and Qualification
To get on an income-based repayment plan, you need two things:
Federal student loans. Private loans don’t count. Parent PLUS Loans also don’t qualify unless you consolidate them using the double consolidation loophole.
A Partial Financial Hardship (PFH). This just means your IBR payment would be lower than what you’d pay on the 10-year Standard Plan.
But take note, the deadline for the double consolidation loophole is set to come this July 1, 2025. So, if you’re planning to double-consolidate, act fast.
Not sure if you’re eligible? Use our IBR Calculator to check instantly.
How to Use Our IBR Calculator?
To effectively use our Income-Based Repayment Calculator and gain accurate insights into your potential student loan payments, follow these steps:
Input Your Loan Details
Loan Balance: Enter your current total federal student loan balance.
Average Interest Rate: Provide the average interest rate across your loans.
Provide Personal and Financial Information
Tax Filing Status: Select your current tax filing status from the options provided.
Family Size: Indicate the total number of individuals in your household, including yourself, your spouse, and any dependents.
State of Residence: Choose the state where you currently reside.
Annual Income: Input your adjusted gross income (AGI) from your most recent tax return.
For a more personalized estimate, click on “I want more accuracy and personalization” to input additional details that may affect your repayment plan.
Review and Compare
After entering all the necessary information, the calculator will provide an estimate of your monthly payment under the IBR plan. Use the provided estimates to assess how the IBR plan fits into your financial situation. Consider exploring other repayment options to compare potential payment amounts.
Related: IBR vs ICR
How Does IBR Compare to Other IDR Plans?
While SAVE is suspended, other IDR options remain open. Check out the table below to see how IBR stacks up against other IDR plans:
More Context for the IBR Calculator
Do You Have a Partial Financial Hardship?
Qualifying for IBR comes down to one simple comparison: If your payment under IBR is lower than what you’d pay on the Standard 10-year Plan, you meet the PFH requirement.
This isn’t about a strict income cap or poverty guidelines. It’s about how your loan balance stacks up against your income. If you make too much relative to what you owe, you might not qualify, even if your budget feels tight.
Think you’re eligible? Run the numbers in our IBR Calculator.
Parent PLUS Loans & the Double Consolidation Loophole
Parent PLUS Loans don’t qualify for IBR on their own. But if you double-consolidate them first, you can unlock IBR and other IDR plans.
If you used double consolidation to get into SAVE, you may still have options depending on how ongoing legal battles shake out. Just don’t consolidate everything into one loan, or you’ll lose the loophole.
If you’re planning to double-consolidate, act fast because the deadline is around the corner. After July 1, 2025, this loophole will be unavailable.
How Filing Taxes Separately Affects Your IBR Payment
Filing separately can lower your IBR payment by keeping your spouse’s income out of the equation. But it could also mean paying more in taxes.
Some borrowers take a strategic approach: File separately, lock in a lower IBR payment, then amend back to “joint” later. It’s allowed under IRS and Department of Education rules, but the tax trade-off varies, so always run the numbers first.
Related: Does IBR Include Spouse Income?
Income Changes? You Can Update Your Payment Anytime
Your IBR payment isn’t fixed for a year. You can recalculate it to account for your annual income growth.
Say you start the year making $80K but later cut back to $40K after having a child. You don’t have to wait until your annual recertification. You can submit updated income info right away and lower your current monthly payment immediately.
Will Forgiveness Be Taxed?
Right now, any federal loan forgiveness is tax-free through 2025. After that, forgiven balances could be taxed at the federal or state level, depending on what Congress does next.
To avoid a surprise tax bill, some borrowers set aside savings or look into hardship exclusions. If forgiveness is part of your plan, check out our breakdown of tax implications.
Your Servicer Doesn’t Set the Rules. But They Can Still Mess Up
All student loan servicers use the same federal formula to calculate IBR payments. But servicers make mistakes all the time.
If something looks off on your bill, don’t just take their word for it. Double-check your numbers and escalate the issue to a student loan ombudsman if needed.
Switching IDR Plans? Here’s What to Watch For
Most of the time, switching between IDR plans won’t reset your progress toward forgiveness, but there are exceptions.
For example, if you move from SAVE to IBR, your repayment timeline could shift from 20 years to 25 years if you only have undergraduate loans. That’s a big deal, so make sure you understand the trade-offs before making a move.
Does Consolidation Reset Forgiveness Progress?
Before, yes. Consolidating loans wipes out your payment history unless you qualify for an exception, like the one-time account adjustment.
Under the new rules, consolidating might keep some of your past payments, but future policy changes could alter that. If this is your plan, read this guide: PSLF Weighted Average.
How Accurate Is the IBR Calculator?
Student loans aren’t like mortgages or car loans. They change a lot. Deferments, consolidations, plan changes, and shifting policies impact what you’ll actually pay over time.
Our calculator gives you a clear estimate of your monthly payment right now. It also models longer-term costs, but real-world repayment isn’t always linear. Borrowers pause payments, switch plans, and deal with policy updates that calculators can’t always predict.
For a deeper breakdown, try the FSA’s Loan Simulator. Both tools are useful, but real-world repayment comes with twists that calculators don’t always capture.
Other Student Loan Calculators:
Related reading:
IBR Calculator FAQs
How much will IBR cost me?
Your total cost depends on three things: 1. Your monthly payments over time 2. Interest accumulation 3. Whether you qualify for forgiveness IBR offers loan forgiveness after 20–25 years, depending on when you first took out loans. Use our calculator to estimate your monthly payment and long-term costs.
What’s the difference between discretionary income and AGI?
Adjusted Gross Income: Your total income after tax deductions (like student loan interest or retirement contributions). Discretionary Income: Your AGI minus 150% of the poverty line. This is the number used to set your IBR payment.
Can I use this calculator if I’m self-employed or have a fluctuating income?
Yes. To get the most accurate estimate, document your income during its lowest period—not just last year’s tax return. When you apply for IBR, you can submit current proof of income instead of relying on old tax filings.
What happens if I don’t qualify for IBR?
If you don’t qualify, it’s usually because your IBR payment isn’t lower than the Standard 10-year Plan, which means you don’t meet the PFH requirement. In that case, other plans like ICR, Extended Repayment, or Graduated Repayment might be better options. If the issue is your loan type, only Direct Loans qualify for IBR. If you have FFEL or Perkins Loans, you’d need to consolidate them into a Direct Consolidation Loan to become eligible. Private loans aren’t eligible for IBR or any IDR plan.
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