IDR Plan Comparison Calculator
Compare all four federal Income-Driven Repayment plans — SAVE, IBR, PAYE, and ICR — side by side using 2026 federal poverty guidelines. Enter your loan balance, income, family size, and filing status to see monthly payments, total cost, and projected forgiveness for each plan. Free, private, runs entirely in your browser — no data sent anywhere.
| Metric | SAVE | IBR (New) | PAYE | ICR |
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| Year | Income | SAVE ($/mo) | IBR ($/mo) | PAYE ($/mo) | ICR ($/mo) |
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How Income-Driven Repayment Plans Work in 2026
Income-Driven Repayment (IDR) plans cap your monthly federal student loan payment as a percentage of your discretionary income — the portion of your income that exceeds a federal poverty guideline (FPL) threshold. According to studentaid.gov, all four active IDR plans share the same core structure: you pay a percentage of your discretionary income each month, and any remaining balance is forgiven after 20 or 25 years of qualifying payments. The 2026 federal poverty guidelines set the 100% FPL baseline at $15,650 for a family of one, increasing by $5,380 per additional household member.
Discretionary income is calculated differently per plan. SAVE uses 225% of FPL as the threshold, meaning you pay nothing on the first $35,213 of income (family of 1, 2026 rates) — a significantly more generous formula than the 150% FPL threshold used by IBR, PAYE, and ICR. This makes SAVE the lowest-payment plan for most borrowers with moderate incomes.
SAVE, IBR, PAYE, and ICR: Key 2026 Differences
Each IDR plan has distinct eligibility rules, payment percentages, and forgiveness timelines. Here is a comparison of the four active plans based on 2026 regulations from ed.gov:
- SAVE (Saving on a Valuable Education) — Formerly REPAYE, SAVE is the newest and most generous plan. It charges 5% of discretionary income for undergraduate loans and 10% for graduate loans (weighted for mixed borrowers), uses a 225% FPL threshold, provides interest subsidy (unpaid interest never capitalizes), and forgives after 20 years (undergrad) or 25 years (grad/mixed). As of mid-2024, SAVE is under legal challenge but remains in a payment pause — check studentaid.gov for current status.
- IBR (Income-Based Repayment — New) — Available to new borrowers on or after July 1, 2014. Payments are 10% of discretionary income above 150% FPL, and forgiveness occurs at 20 years. Older IBR (pre-July 2014 borrowers) uses 15% and 25-year forgiveness.
- PAYE (Pay As You Earn) — Requires financial hardship (IDR payment must be less than standard payment). Charges 10% of discretionary income above 150% FPL, with 20-year forgiveness. Requires being a new borrower on or after October 1, 2007 with a disbursement on or after October 1, 2011.
- ICR (Income-Contingent Repayment) — The oldest IDR plan and the only one available to Parent PLUS loan borrowers (after consolidation). Charges the lesser of 20% of discretionary income (using 100% FPL, not 150%) or the amount due on a 12-year fixed repayment plan. Forgiveness at 25 years.
Choosing the Right IDR Plan for Your Loans
The best IDR plan depends on your loan type, income trajectory, and forgiveness timeline. As a general rule, SAVE provides the lowest monthly payment for most borrowers because of its 225% FPL threshold and interest subsidy. However, SAVE's legal status is uncertain as of mid-2025 due to federal court injunctions. IBR (new) is typically the safe fallback for recent borrowers. PAYE may provide slightly lower payments than IBR for some income levels but has stricter eligibility requirements.
ICR is rarely the best choice for direct loan borrowers but is the only option for consolidated Parent PLUS loans. If you are pursuing Public Service Loan Forgiveness (PSLF), any IDR plan qualifies, and forgiveness occurs after just 10 years of payments — in which case the plan with the lowest payment maximizes the amount forgiven tax-free under PSLF rules.
Key decision factors include: loan type (undergrad vs grad), income growth expectations, family size, eligibility window, and whether you are pursuing PSLF. This calculator models all four plans simultaneously so you can compare total cost across your full repayment horizon.
The IDR Tax Bomb: Planning for Forgiveness
When your remaining loan balance is forgiven at the end of an IDR plan's forgiveness period, the forgiven amount is generally treated as ordinary income under the Internal Revenue Code — creating a large tax liability in the year of forgiveness, commonly called the "tax bomb." For a $60,000 forgiven balance, a borrower in the 22% federal bracket plus state taxes could owe $15,000–$20,000 in taxes in a single year.
The American Rescue Plan Act temporarily exempted IDR forgiveness from federal taxes through 2025. As of 2026, that exclusion has not been permanently extended. Borrowers should model their projected forgiven balance, estimate the tax liability, and consider building a savings fund over their repayment period to avoid a financial surprise at forgiveness. PSLF forgiveness remains permanently tax-free under federal law, which is a significant advantage for eligible public service workers. Sources: studentaid.gov, ed.gov. Last updated: May 2026.
Frequently Asked Questions
What is the difference between SAVE, IBR, PAYE, and ICR?
SAVE (formerly REPAYE) is the most generous plan for most borrowers — it uses a 225% FPL income threshold and caps undergraduate loan payments at 5% of discretionary income with forgiveness at 20 years. IBR (new) uses 10% of income above 150% FPL with 20-year forgiveness. PAYE also uses 10% above 150% FPL but has strict new-borrower eligibility requirements. ICR uses 20% above 100% FPL with 25-year forgiveness and is the only option for consolidated Parent PLUS loans. SAVE generally produces the lowest monthly payment, but its legal status is currently under court review.
How is discretionary income calculated for IDR plans?
Discretionary income is your Adjusted Gross Income (AGI) minus a percentage of the federal poverty guideline for your family size and state. SAVE uses 225% of FPL — for a family of 1 in 2026, that is $15,650 × 2.25 = $35,213. IBR, PAYE, and ICR (except ICR uses 100% FPL) use 150% of FPL ($23,475 for family of 1 in 2026). Income below those thresholds results in a $0/month payment. Alaska and Hawaii have higher FPL amounts.
Will the forgiven amount be taxed as income?
Under current federal law, IDR loan forgiveness is generally taxable as ordinary income. The American Rescue Plan Act exempted IDR forgiveness from federal taxes through 2025, but that exclusion has not been made permanent as of 2026. Borrowers should plan for a potential tax bill in the year of forgiveness. PSLF forgiveness (after 10 years of public service payments) is permanently tax-free under a separate provision of the tax code. Some states tax forgiven amounts even when federal law provides an exclusion.
What is the SAVE plan, and is it available in 2026?
SAVE (Saving on a Valuable Education) replaced REPAYE in 2023 and was designed to be the most affordable IDR plan for most borrowers. However, federal courts issued injunctions against the SAVE plan in mid-2024, pausing its implementation. As of early 2026, affected borrowers are in an interest-free administrative forbearance. Payments are not required, but months in forbearance may not count toward IDR forgiveness. Check studentaid.gov for the latest status before enrolling.
Does filing taxes separately help married borrowers on IDR plans?
Yes. If you are married and file taxes as Married Filing Separately (MFS), most IDR plans calculate your payment based only on your income, not your household income. This can significantly lower your monthly IDR payment if your spouse earns significantly more than you. The trade-off is losing access to tax benefits like the student loan interest deduction and potentially paying higher combined federal taxes. Run both scenarios to determine which approach saves more overall.
How do IDR payments count toward PSLF?
If you work full-time for a qualifying public service employer (government agencies, 501(c)(3) nonprofits, certain other organizations), you qualify for Public Service Loan Forgiveness after making 120 qualifying monthly payments under an IDR plan. PSLF forgiveness is tax-free and occurs much earlier than standard IDR forgiveness (10 years vs 20–25 years). Any IDR plan qualifies for PSLF, so choosing the lowest payment maximizes the forgiven amount. Certify your employment annually at studentaid.gov.