Enter your income, family size, and loan details to see if you qualify for a PFH.

If You Qualify for a Partial Financial Hardship

• Contact your loan servicer to request IBR or PAYE.

• Submit proof of income using your most recent tax return or pay stubs.

• Provide family size information, including dependents or household members you support.

• Wait for your servicer to process the request (usually within a few weeks).

• Continue making your current payment until the new plan starts.

If You Don’t Qualify for a Partial Financial Hardship

• Stick with your current plan, like SAVE, to keep payments manageable.

• Explore other repayment plans, like Income-Contingent Repayment (ICR), which may work better for borrowers with Parent PLUS loans.

• Revisit this calculator if your situation changes, such as a drop in income or an increase in family size.

Not sure what your results mean? We’ll help you figure it out. Get clear answers and a plan that works for you.

PFH determines whether you qualify for IBR or PAYE by showing that your standard loan payments are higher than what you’d pay on these plans.

If you qualify, you could see significantly lower monthly payment amounts and keep your loans more manageable.

Here’s why it matters:

• It determines your eligibility for IBR and PAYE. PFH shows that your standard loan payments are unaffordable compared to what you’d pay under IBR or PAYE. Without it, these plans aren’t an option.

• It impacts your monthly payments. Qualifying for PFH means your payments could drop to 10-15% of your discretionary income, giving you more room in your budget for essentials.

• It could save you thousands over time. Lower payments free up cash now, and any remaining balance could be forgiven after 20 or 25 years of payments on IBR or PAYE.

• It helps you prepare for the unexpected. With SAVE facing legal challenges, qualifying for PFH gives you a fallback option to lower your payments if needed.

Only certain loans qualify for IBR or PAYE:

• Direct Loans are eligible, including Subsidized, Unsubsidized, Graduate PLUS, and Direct Consolidation Loans.

• FFEL Stafford Subsidized and Unsubsidized Loans and Perkins Loans qualify only if you consolidate them into a Direct Consolidation Loan.

• Parent PLUS Loans don’t qualify, even if consolidated—unless you use the double consolidation loophole.

• Private Student Loans aren’t eligible for IBR or PAYE.

Good news for borrowers: After being recently reopened, the PAYE and Income-Contingent Repayment plans are now officially available for new enrollments.

These plans give borrowers more options while litigation over the SAVE Plan continues. Borrowers can apply for PAYE or ICR through StudentAid.gov/idr until July 1, 2027.

• PAYE: Only for borrowers who took out loans after October 1, 2007. Payments are capped at 10% of discretionary income.

• IBR: Available to all eligible borrowers, with payments capped at 10-15% of discretionary income, depending on when you borrowed.

If your loans or income don’t meet these requirements, you won’t qualify for IBR or PAYE.

Your income and tax information determine your eligibility and monthly payments for the PAYE and IBR Plans.

Here’s how it works:

• Adjusted Gross Income: Your AGI, taken from your most recent income tax return, is the starting point. This number reflects your total income after deductions, like retirement contributions or student loan interest.

• Discretionary Income: Your servicer calculates your discretionary income by subtracting 150% of the federal poverty guideline for your family size from your AGI. This ensures your basic living expenses are accounted for before determining your loan payments.

• Verification Requirements: You’ll need to verify your income every year using your tax return, pay stubs, or a self-certification if your income drops.

• Family Size: The number of people in your household directly impacts your discretionary income calculation. A larger family size means more of your income is protected from being counted toward your payments.

If your payments don’t cover the full interest, the government pays unpaid interest on subsidized loans for the first three years. After that, interest builds up but won’t capitalize unless you leave the plan.

Here’s what you need to know:

• Subsidized Interest Protection: The government pays any unpaid interest on subsidized loans for the first three years after you enroll.

• Unpaid Interest Accrual: After that, unpaid interest will continue to build up, but it won’t be added to your loan balance (capitalized) unless you leave the plan or miss your annual recertification.

• Loan Forgiveness: Any remaining balance, including unpaid interest, can be forgiven after 20 or 25 years of qualifying payments.

You can still qualify for forgiveness even with unpaid interest. Just remember to recertify your income every year to avoid problems.

Related: When Does Interest Capitalize on Student Loans

If PAYE or IBR don’t work for you, here are other options to consider:

• Income-Contingent Repayment: Best for borrowers with high incomes and low loan balances or those with Parent PLUS loans. Payments are capped at 20% of your discretionary income or the amount you’d pay on a 12-year fixed plan, whichever is lower.

• Refinancing: Ideal for borrowers with high incomes and strong credit who no longer need federal benefits like Public Service Loan Forgiveness or IDR plans. Refinancing can lower your interest rate but permanently eliminates federal protections.

If you’re unsure, stick with a plan that keeps your federal benefits while you evaluate your options.

Federal student loans are complicated—more than any car loan or mortgage. These loans aren’t like mortgages or car loans with fixed terms. Instead, they’re dynamic, changing significantly over time due to deferments, consolidations, payment pauses, or shifts between repayment plans.

Our calculator is designed to help you understand your monthly payment options. The calculator gives estimates for long-term scenarios, but repayment changes can affect your total costs and timelines.

For a detailed breakdown of repayment options, we recommend using the Loan Simulator on the Federal Student Aid website at StudentAid.gov. It’s a powerful tool that considers multiple variables, like loan forgiveness eligibility and income-driven repayment plan changes, to give you a clearer picture of your repayment journey.

Use our calculator for a quick estimate, then explore the Loan Simulator for a deeper dive into your options.