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C.10 · Debt

Student loan repayment — three plans compared.

Federal student loans support three repayment shapes: standard 10-yr fixed, graduated, and income-driven. We show all three side by side.

Typical length
10 years (standard)
The default for federal Direct loans
Inputs
Loan balanceUndergrad averages ~$30K; med, dental, vet, and grad school can run $200K–$500K.
$30,000
Interest rate
5.50%
Annual income (before taxes)Used to estimate your income-driven plan payment.
$55,000
Standard plan · same payment for 10 years
$326/mo
An income-driven plan (payment based on what you earn) would be $262/mo — but it's spread over ~20 years, so compare total cost too.
How much you still owe, year by year
Standard plan: how the balance is paid down over 10 years
$0$14K$28KYear 0Year 5Year 10
Amount you owe
$30,000
Standard: total paid (10 yrs)
$39,070
Graduated: total paid (10 yrs)
$40,575
Income-driven: total you’d pay (~20 yrs)
$42,720
Paid off within ~20 yrs — nothing forgiven

Income-driven rules are changing. The SAVE plan is being wound down, and a new Repayment Assistance Plan (RAP) and Tiered Standard Plan begin July 1, 2026 (PAYE and ICR close to new borrowers then; IBR stays). This estimate uses the older income-driven formula — roughly 10% of discretionary income, with any balance forgiven after ~20 years — so confirm the plan you'd actually get at StudentAid.gov.

Year-by-year breakdown

Standard plan: year-by-year payoff

Standard 10-year federal repayment is paid down like any fixed-rate loan. Around year 4–5, more of each payment finally goes to your balance than to interest.

Year
Principal
Interest
Balance
Progress
1
$2,315
$1,592
$27,685
8%
2
$2,445
$1,462
$25,240
16%
3
$2,583
$1,324
$22,657
24%
4
$2,729
$1,178
$19,928
34%
5
$2,883
$1,024
$17,045
43%
6
$3,045
$861
$13,999
53%
7
$3,217
$690
$10,782
64%
8
$3,399
$508
$7,383
75%
9
$3,590
$316
$3,793
87%
10
$3,793
$114
$0
100%
How we compute this

Standard, Graduated, IDR — which wins?

Standard is a fixed 10-year amortization (predictable but highest monthly). Graduated is also a 10-year plan, but the payment starts lower and steps up every 2 years — so you pay a little more interest overall. Income-driven (IDR) plans cap your payment at a share of your discretionary income — your income above about 150% of the federal poverty line — and forgive any remaining balance after roughly 20–25 years. Note: these plans are being overhauled — the SAVE plan is winding down and a new Repayment Assistance Plan (RAP) and Tiered Standard Plan arrive July 1, 2026 — so check StudentAid.gov for the plan you would actually enroll in.

standardMonthly = PMT(balance, rate, 10 yr)

PMT is the standard loan-payment formula (the same one spreadsheets use). An income-driven plan (IDR) is the move if your income is low relative to your balance — you'll pay less per month, and any balance left after ~20 years can be forgiven. Standard wins if you can afford it and want to minimize total interest.

Next up

Continue the decision

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Frequently Asked Questions

Federal loans offer Standard (fixed payments over 10 years), Graduated (also 10 years, but payments start lower and increase every 2 years), and Income-Driven (IDR) plans that base your payment on your income. Heads up: IDR is being overhauled -- the SAVE plan is winding down, and a new Repayment Assistance Plan (RAP) and Tiered Standard Plan begin July 1, 2026, while PAYE and ICR close to new borrowers (IBR remains). Private loans typically only offer standard repayment.

Go Deeper

Guides That Pair With This Calculator

Understand the concept behind the numbers before you run them.

Guide

Student Loan Repayment Plans Compared

A side-by-side comparison of student loan repayment plans -- standard, graduated, and income-driven -- so you can pick the right one.