Estimate your federal IBR monthly payment using AGI, family size, and 2025 HHS poverty guidelines. Compare to standard 10-year payoff and see estimated forgiveness at year 25.
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vs $347/mo on standard 10-year
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IBR is a federal repayment plan that caps your monthly student loan payment at 10% of discretionary income (defined as AGI minus 150% of the federal poverty line for your family size). Any remaining balance is forgiven after 25 years of qualifying payments per 34 CFR §685.221.
Discretionary income = AGI − (150% × federal poverty level × family size factor). For 2025, the HHS poverty level is $15,060 for a household of 1, plus $5,380 per additional person. So a single filer with $48,000 AGI has discretionary income of $48,000 − ($15,060 × 1.5) = $25,410.
Yes — under IRC §61, cancellation of debt is generally treated as taxable income in the year forgiven. Some federal carve-outs have applied to specific programs (PSLF, ARPA 2021–2025), but standard IBR forgiveness at year 25 is currently treated as taxable. Plan for the tax bill or verify your plan with a CPA.
If your IBR monthly payment is less than the monthly interest accruing on your balance, the unpaid interest is added to the balance — this is "negative amortization." Your balance can grow for years before payments catch up. Forgiveness at year 25 wipes the remaining balance.
IBR is the baseline income-driven plan (10% of discretionary income, 25-year forgiveness). SAVE replaced REPAYE with lower payments (5–10%) and unpaid-interest subsidy — its current legal status is in flux as of 2025. PSLF forgives federal loans after 10 years of qualifying payments at a 501(c)(3) or government employer. This calculator covers basic IBR only.
Standard 10-year: Monthly = P × r(1+r)n / ((1+r)n − 1), where P = balance, r = monthly rate, n = 120.
IBR monthly: 10% × discretionary income ÷ 12, where discretionary income = max(0, AGI − 150% × FPL × family size factor).
2025 FPL (HHS): $15,060 (single) + $5,380 per additional household member.
IBR 25-year simulation:Standard monthly amortization with the IBR payment held constant. If the payment doesn't cover monthly interest, the balance grows (negative amortization). Remaining balance at month 300 is treated as forgiven.
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.