How the calculators work

Repayment Assistance Plan

Section 455(q) of the Higher Education Act, added by Public Law 119-21, and 34 CFR 685.209 as published on May 1, 2026. The yearly base payment is $120 when adjusted gross income is $10,000 or less; above that, one percentage applies to the whole AGI:

Monthly payment = base ÷ 12 − $50 per dependent claimed on your return, with a $10 minimum. When both spouses have eligible loans on a joint return, the payment is multiplied by your share of the couple's balances, with the same minimum. The simulation applies each payment to interest, then principal; unpaid interest of an on-time month is not charged (685.209(h)(4)); if principal fell by less than $50, it is reduced by the lesser of $50 and the payment, minus what the payment already took off principal (685.209(o)(2)). The payment is recomputed every 12 months on an income grown by the raise you enter. Forgiveness after 360 qualifying payments.

Income-Based Repayment

Section 493C as amended, 34 CFR 685.209(b)(1), (f)(2)-(3) and (g)(1): 15% of AGI above 150% of the HHS poverty guideline for your family size and state group, ÷ 12; 10% for a borrower with no federal loan balance before July 1, 2014 (and no loan after June 30, 2026). The payment never exceeds the 10-year standard payment computed on the balance when you enter the plan. Under $5 the payment is $0; from $5 to $10 it is $10. Unpaid interest accrues and is paid first. Forgiveness after 240 or 300 payments. Not modeled: the three-year interest benefit on subsidized loans, and capitalization when you leave the plan. Poverty guidelines: HHS 2026, $15,960 for one person in the 48 states and DC plus $5,680 per added person.

Fixed plans

10-year standard (685.208(b)(1)): level payment over 120 months, at least $50. Tiered Standard (HEA 455(d)(7)(A)(i), 685.208(c)(1)): level payment over 10 years below $25,000 of total principal, 15 years from $25,000, 20 years from $50,000, 25 years from $100,000.

Which plans the comparator shows

With any Direct Loan made on or after July 1, 2026, only RAP and Tiered Standard are shown, for all loans (HEA 455(d)(7)(A) and (C); 685.209(d)(5)). Otherwise RAP, IBR, Tiered Standard and the 10-year plan. PAYE and ICR are not computed: they end on June 30, 2028 and are closed to new enrollment. SAVE is closed; its formula (5% or 10% of income above 225% of the poverty guideline) appears only on the SAVE page, as a reference.

PSLF and forgiveness

120 qualifying payments while employed full time (30 hours a week or more) by a qualifying employer, under 34 CFR 685.219. The projection pays the plan's payment each month for the payments left and reports the balance then. Tax: PSLF forgiveness is excluded by 26 U.S.C. 108(f)(1); since January 1, 2026, section 108(f)(5) excludes only death and disability discharges.

Student Aid Index and Pell Grant

Formulas A (dependent), B (independent without dependents) and C (independent with dependents) of the 2026-27 SAI and Pell Grant Eligibility Guide, with the tables of Federal Register 2025-10243: income protection allowances, payroll tax allowance on 2024 earnings, employment expense allowance (35% of earnings up to $5,000), asset conversion rates (12% for parents, 20% for a dependent student, 7% for an independent student with dependents), the assessment schedule and rounding to the dollar. Maximum Pell when 2024 AGI is at or under 175% of the 2024 poverty guideline (225% for a single parent), or for non-filers (SAI −1,500). Award = $7,395 − SAI when the SAI is at most $6,656; minimum award $739.50 for incomes under the minimum-Pell lines (275% to 400% of poverty); none when the SAI reaches twice the maximum (Public Law 119-21 sec. 83001(b)). Simplified: untaxed income additions and offsets are left out of the form, and the school's enrollment-intensity proration is not applied.

Interest rates and limits

Rates for loans first disbursed July 1, 2026 to June 30, 2027: 6.52%, 8.07% and 9.07%, from the notice of September 10, 2026. Loan limits: 34 CFR 685.203 and HEA 455(a)(4) to (8). The auto pay reduction (0.25%, or 1% in total for borrowers enrolled by December 31, 2026) is not applied unless you lower the rate yourself.

Tests

The engines run on every build against the Department's published examples (RAP $150 at $45,000 with no dependent; prior-plan $176; 10-year $341 and Tiered Standard $262 on $30,000), the tier and bracket boundaries, the IBR rounding rules, the payroll tax example of the SAI guide and hand-computed SAI cases. A failing test blocks publication.

What the calculators do not do

• They do not read your loans or replace your servicer's calculation.
• They assume on-time payments and the income path you enter.
• They do not model FFEL or Perkins loans, consolidation with mixed rates, state forgiveness programs or the school's final aid package.

Every source

Questions or corrections: contact page. See also the editorial policy.