The Federal Student Loan Repayment Calculator: How To Estimate Your Payments

Federal student loans play a major role in helping students pay for college, accounting for nearly a quarter of all undergraduate financial aid, according to the latest College Board data. A key advantage is the variety of repayment plans they offer, which are far more flexible than those most private lenders provide.

Still, choosing the right repayment plan can feel overwhelming. That’s where the federal student loan repayment calculator can help. You can use it to estimate your payments and compare plans to find the best fit. 

Current student loan refinance rates

What is the federal student loan repayment calculator?

The U.S. Department of Education offers a free online tool, called the loan simulator, that enables you to calculate your monthly payments and determine how long it might take to pay off your loans under each federal student loan repayment plan.

Learn More: Compare Federal Student Loan Repayment Plans

You can also use the calculator to see if consolidating your loans into a Direct Consolidation Loan makes sense after graduation, or to compare repayment plans if you're having trouble keeping up with payments later on.

What information do you need to use the calculator?

To get the most accurate results from the loan simulator, you’ll need to gather some key details about your loans and finances. This includes:

• Your federal loan types 
• Your outstanding loan balance
• The interest rates on your loans
• Your income and family size
• Your state of residence

You’ll also answer a few questions about your employment, tax filing status, number of dependents, and health insurance coverage. You can set specific repayment goals, like qualifying for Public Service Loan Forgiveness (PSLF), paying off your loans as quickly as possible, or becoming debt-free by a certain date. Based on your answers, the calculator will recommend the plan that best fits your situation.

Example repayment plan comparison

Your loan simulator results will be tailored to your specific loans, income, and repayment goals. Here’s an example based on the following borrower scenario:

• Lives in Texas
• Earns $50,000 per year
• Income grows by 3% annually (based on U.S. Census data)
• Has $20,500 in outstanding Direct Subsidized and Unsubsidized Loans at a 6.39% interest rate
• No specific payoff goal or timeline

In this case, the Income-Contingent Repayment (ICR) or Graduated Repayment Plan offers the lowest starting monthly payments, but also results in the highest overall interest charges. The Standard Repayment Plan has the highest monthly payments, but it costs less in the long run because the loan is paid off faster and with less interest.

Changes to student loan repayment plans 

Repayment options will change next year under newly enacted federal student loan reforms. 

“Borrowers taking out loans after July 1, 2026 will have access to two plans: the Standard Plan, which can range between 10 and 25 years based on loan balance, and a Repayment Assistance Plan, which is a new income-based plan,” says Jack Wang, a wealth adviser with Innovative Advisory Group who specializes in college financial planning.

How does the calculator help you make repayment decisions?

The loan simulator lets you enter details about your loans, income, family size, and repayment goals, then shows you a side-by-side comparison of your options. You’ll see your estimated monthly payment, total repayment cost (including interest), when you’ll pay off your loans, and whether each plan qualifies for Public Service Loan Forgiveness (PSLF).

It also helps you weigh the trade-offs between different plans. For example, an income-driven repayment plan might lower your monthly payments, but it can significantly extend your repayment timeline and increase the total interest you pay over time.

“The choice really comes down to whether you can handle higher monthly payments now versus potentially paying more over time,” says Bethany Hubert, a financial aid specialist at Going Merry by Earnest.

“Income-driven plans base your payments on a percentage of your discretionary income — between 10% and 20%, and payments are recalculated annually based on your income and family size. While these plans can lower your monthly payment to as little as $0, they also extend your repayment period compared to the standard 10-year plan, which means you could end up paying more in total interest.”

The loan simulator tool puts all these numbers in front of you so you can choose the plan that best fits your budget and long-term goals.

Choosing the right repayment plan 

Your loan simulator results can give you a clear picture of what to expect from each repayment plan, helping you choose the best option and budget accordingly as you approach graduation.

When making your decision, “It’s important to be very honest with yourself about current and future income and financial plans,” advises Sara Parrish, president of CampusDoor. 

"Are your income prospects strong, and would you like to eliminate your debt as quickly as possible? If so, you may want to stay in a standard fixed plan and knock it out,” she says. “Do you plan to start a family? Do you need to preserve as much free cash flow as possible? An income-driven plan might be your best choice in these circumstances.”

The loan simulator can also help you adjust your plan later if your situation changes, such as switching to an income-driven plan, exploring forgiveness options, or seeing if consolidation could make repayment easier.

“If none of the federal plans are a good fit — or if you’re in a stronger financial position now than when you first borrowed, refinancing with a private lender might also be worth exploring,” says Hubert. “It could lower your interest rate or simplify multiple loans into one.”

Just keep in mind that “refinancing isn’t reversible, so it’s only a good option if you’re sure you won’t need federal protections like IDR or forgiveness down the line,” she cautions. 

See Also: I Refinanced My Federal Student Loans, and I Don't Regret It