Student Loan Payoff Calculator

How to Use This Student Loan Calculator

This free 2026 student loan calculator helps you estimate your monthly payment, total interest paid, and payoff date under any repayment plan. Enter your loan balance, select your 2026 interest rate, choose a repayment plan, and click Calculate My Student Loan. For income-driven plans like IBR or PSLF, enter your annual income and family size to see your income-based payment. Add an extra monthly payment amount to see exactly how much interest you save and how much faster you pay off your loan.

2026 Federal Student Loan Interest Rates

Federal student loan interest rates for the 2025-2026 school year are set annually by Congress based on the 10-year Treasury note auction in May. The rates below apply to Direct Loans first disbursed between July 1, 2025 and June 30, 2026, verified from StudentAid.gov.

The undergraduate Direct Subsidized and Unsubsidized loan rate is 6.39%. Graduate and professional students borrowing Direct Unsubsidized loans pay 7.94%. Parent PLUS and Graduate PLUS loans carry the highest rate at 8.94%. These rates are fixed for the life of the loan — meaning the rate you receive in 2026 does not change when new rates are announced next year.

Private student loan rates vary by lender and borrower creditworthiness, typically ranging from around 4% to 16% depending on the lender, whether the rate is fixed or variable, and the creditworthiness of the borrower or co-signer. Our calculator works for both federal and private loans — simply enter the actual interest rate on your loan.

Student Loan Repayment Plans in 2026 — What Changed Under OBBBA

The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made significant changes to the federal student loan repayment landscape that every borrower needs to understand for 2026 and beyond.

The most important change is the termination of the SAVE plan (Saving on a Valuable Education). SAVE was the most generous income-driven repayment plan ever offered, providing payments as low as 5% of discretionary income for undergraduate borrowers and offering forgiveness after as few as 10 years for small balances. Under the OBBBA, SAVE is permanently terminated. Borrowers who were on SAVE are being transitioned to alternative IDR plans, primarily IBR.

Graduate PLUS loans are eliminated for new borrowers after July 1, 2026. Existing Graduate PLUS borrowers disbursed before that date may continue borrowing. For new graduate students, this means relying on Direct Unsubsidized loans up to annual limits, which are lower than PLUS loan limits.

IDR forgiveness is now taxable. The American Rescue Plan’s temporary exemption from federal income tax on student loan forgiveness expired at the end of 2025. Starting in 2026, any balance forgiven under income-driven repayment plans — including IBR and the old SAVE plan — is treated as taxable income in the year of forgiveness. This can create a significant tax bill. PSLF forgiveness remains permanently tax-free.

Standard vs Income-Driven Repayment — Which Is Right for You?

The Standard Repayment Plan is a 10-year fixed payment plan. It results in the lowest total interest paid because you pay off your balance in the shortest time. For a $30,000 loan at 6.39%, the standard monthly payment is approximately $339 and you pay about $10,680 in total interest over 10 years. This is the right choice if you can afford the payment and want to minimize interest costs.

Income-Based Repayment (IBR) caps your payment at 10% of discretionary income for new borrowers, with any remaining balance forgiven after 25 years (taxable). For borrowers with low income relative to their debt, IBR payments can be significantly lower than the standard payment. However, lower payments mean more interest accrues — in some cases, the balance can actually grow over time if payments don’t cover monthly interest charges.

Public Service Loan Forgiveness (PSLF) is available to full-time employees of government agencies and qualifying non-profit organizations. After 120 qualifying monthly payments under an IDR plan, the remaining balance is forgiven tax-free. PSLF is one of the most powerful student loan benefits available but requires careful qualification tracking. Our calculator models PSLF by running IBR payments for 10 years and showing the forgiven balance.

The Extended Repayment Plan stretches payments over 25 years, significantly reducing your monthly payment compared to the standard plan. However, you pay far more in total interest. A $30,000 loan at 6.39% on the extended plan costs approximately $29,400 in total interest — nearly the original loan amount — versus $10,680 on the standard plan.

How Extra Payments Save You Money

One of the most powerful tools for student loan borrowers is extra monthly payments. Even a small extra payment dramatically reduces total interest paid and shortens your payoff timeline through the power of amortization.

On a $30,000 loan at 6.39% with a standard $339 monthly payment, you pay $10,680 in interest over 10 years. Adding just $100 per month ($439 total) reduces your interest to approximately $7,800 — saving $2,880 — and cuts your payoff time by about 2 years. Adding $200 per month saves over $4,000 in interest and pays off the loan in about 7 years. Our calculator shows you the exact savings when you enter an extra payment amount.

The key principle is that extra payments reduce your principal faster, which means less interest accrues on every subsequent payment. This effect compounds over time — the earlier in the loan you make extra payments, the more interest you save. If you receive a tax refund, bonus, or any windfall income, applying it directly to your student loan principal is one of the highest-return financial moves available.

Student Loan Forgiveness in 2026 — Key Facts

Student loan forgiveness in 2026 comes in several forms, each with very different tax treatment and eligibility requirements. Understanding the differences is critical for repayment planning.

PSLF forgiveness is tax-free and permanent. After 120 qualifying payments while working full-time for a government or qualifying non-profit employer, any remaining federal loan balance is forgiven with no federal income tax consequences. This makes PSLF extremely valuable for borrowers with large balances and moderate incomes in public service careers — doctors at public hospitals, nurses, teachers, social workers, and government employees.

IDR forgiveness under IBR is now taxable. After 25 years of IBR payments, any remaining balance is forgiven. However, starting in 2026, that forgiven amount is treated as ordinary income in the year of forgiveness. If you have $50,000 forgiven in a year when you earn $60,000, the IRS treats your income as $110,000 for tax purposes. This “tax bomb” has long been a concern with IDR forgiveness and is now a reality. Borrowers should plan ahead — setting aside savings in anticipation of the tax bill or consulting a tax professional.

Federal vs Private Student Loans

Federal student loans offer protections and flexibility that private loans do not. Federal loans come with income-driven repayment options, PSLF eligibility, deferment and forbearance options, and fixed interest rates set by Congress. They require no credit check for most loan types (except PLUS loans). Federal loans should always be exhausted before turning to private alternatives.

Private student loans are credit-based and offered by banks, credit unions, and online lenders. Rates can be fixed or variable and depend heavily on your credit score and income. Private loans typically do not offer income-driven repayment, forgiveness programs, or the same deferment options as federal loans. They can make sense to fill funding gaps after exhausting federal options, especially for borrowers with excellent credit who qualify for rates lower than federal rates.

Frequently Asked Questions

What is the student loan interest rate in 2026?

For the 2025-2026 academic year, federal Direct Subsidized and Unsubsidized undergraduate loans carry a 6.39% fixed rate. Graduate Direct Unsubsidized loans are 7.94%. PLUS loans (parent and graduate) are 8.94%. These rates are fixed for the life of the loan and verified from StudentAid.gov.

Is the SAVE plan still available in 2026?

No. The SAVE plan was permanently terminated under the OBBBA signed July 4, 2025. It is not available for new enrollment and existing SAVE borrowers are being transitioned to IBR. The SAVE plan no longer exists as a repayment option in 2026.

Is student loan forgiveness taxable in 2026?

It depends on the type. IDR forgiveness (including IBR after 25 years) is taxable as ordinary income starting in 2026 — the ARP tax exemption expired at end of 2025. PSLF forgiveness remains permanently tax-free under federal law. Always verify current tax treatment with a tax professional before making forgiveness-based repayment decisions.

How much do I save with extra loan payments?

Extra payments reduce your principal faster, which reduces the interest that accrues on every subsequent payment. On a $30,000 loan at 6.39%, adding $100/month saves approximately $2,880 in interest and cuts 2 years off your repayment timeline. Use our calculator’s extra payment field to see your exact savings.

What is IBR and how is the payment calculated?

Income-Based Repayment (IBR) caps your monthly payment at 10% of your discretionary income for new borrowers. Discretionary income is calculated as your AGI minus 150% of the federal poverty guideline for your family size. For 2026, the poverty guideline base is $15,960 for a family of one. Any remaining balance after 25 years is forgiven but taxable.

What is PSLF and who qualifies?

Public Service Loan Forgiveness forgives the remaining federal loan balance after 120 qualifying monthly payments while working full-time for a government agency or qualifying 501(c)(3) non-profit. Qualifying employers include federal, state, local, and tribal governments, and most non-profit organizations. PSLF forgiveness is permanently tax-free.

Should I refinance my student loans?

Refinancing federal loans into private loans eliminates your access to federal protections — IDR plans, PSLF, deferment, and forbearance. Refinancing makes most sense if you have a stable high income, do not plan to use public service forgiveness, and can qualify for a private rate significantly lower than your current federal rate. Never refinance federal loans without carefully weighing the loss of federal benefits.

How long does it take to pay off student loans?

Under the Standard Plan, federal loans are paid off in 10 years. Under Extended Repayment, up to 25 years. Under IBR, payments continue for up to 25 years with any remainder forgiven. Extra payments can significantly shorten your timeline — our calculator’s balance-over-time chart shows your exact payoff trajectory year by year.

Related Calculators

Use these free tools to complete your financial picture:

• Loan EMI Calculator — calculate monthly payments on any loan type
• Debt Payoff Calculator — plan aggressive payoff across multiple debts
• Paycheck Calculator — see your take-home pay after taxes and deductions
• Budget Planner — fit your student loan payment into your monthly budget
• Retirement Calculator — balance student loan payoff with retirement savings