Compare repayment plans and see the impact of making extra payments on your student loan payoff timeline and total interest.
Student loan interest accrues daily on your remaining principal. Every extra dollar you pay reduces that principal, which means less interest accumulates the following day — and every day after. Small additional payments compound into large savings over a 10-year repayment window.
On a $35,000 loan at 6.52%, an extra $100 per month saves roughly $3,400 in interest and pays the loan off about 2.5 years early. An extra $200 per month saves over $5,200 and cuts about 4 years off the term.
This is the most common mistake borrowers make: sending extra money without specifying how it's applied. By default, many loan servicers apply extra payments to your next scheduled payment rather than to principal reduction. That means your next due date moves forward, but your principal barely budges.
To make extra payments count, contact your servicer (online or by phone) and specify that overpayments should be applied to principal. Some servicers let you set this as a permanent preference. Always confirm it's working by checking your principal balance after a payment posts.
| Plan | Term | Monthly Payment | Total Paid |
|---|---|---|---|
| Standard | 10 years | $398 | $47,700 |
| Extended | 20 years | $261 | $62,700 |
| Extended | 25 years | $237 | $71,000 |
Based on $35,000 at 6.52%. Extending from 10 to 25 years saves $161/month but costs an extra $23,300 in interest over the life of the loan.
Extra payments make the most sense when: your loan interest rate is higher than what you'd earn investing the same money, you have no high-interest debt (like credit cards) that should be paid first, and you have a basic emergency fund in place.
If you have federal loans and are pursuing Public Service Loan Forgiveness (PSLF), extra payments can actually hurt you — PSLF forgives your remaining balance after 10 years of qualifying payments, so paying down principal faster means you get less forgiven. In that case, pay the minimum and let forgiveness do the work.
If your standard monthly payment is unmanageable relative to your income, income-driven repayment (IDR) plans cap your payment based on your income rather than your balance. The Repayment Assistance Plan (RAP) replaced the SAVE plan in July 2026 and is the primary income-driven option for most new borrowers; older IDR plans (IBR, and PAYE/ICR for a limited group) still use the discretionary-income method, but RAP works differently — it's based on a bracketed percentage of your full Adjusted Gross Income (AGI), not discretionary income. After a qualifying repayment period, any remaining balance is forgiven — though that forgiveness may be taxable income. Check your servicer's current plan options, since IDR rules have changed multiple times in recent years.
RAP payments scale in 1-percentage-point steps for every $10,000 of AGI, from 1% up to a 10% cap for income above $100,000 — then $50 is subtracted for every dependent you claim on your tax return, with a $10/month floor no matter how low your calculated payment gets.
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| Annual AGI | Base payment rate |
|---|---|
| $0 – $10,000 | Flat $10/month |
| $10,001 – $20,000 | 1% of AGI |
| $20,001 – $30,000 | 2% of AGI |
| $30,001 – $40,000 | 3% of AGI |
| $40,001 – $50,000 | 4% of AGI |
| $50,001 – $100,000 | 5–9% of AGI (1 point per $10,000) |
| $100,001 and up | 10% of AGI (capped) |
Worked example: a borrower earning $50,000 AGI with one dependent falls in the 4% bracket: ($50,000 × 4%) ÷ 12 = $166.67/month, minus $50 for the dependent = $116.67/month. A borrower with the same income and no dependents pays the full $166.67/month. RAP also includes an interest subsidy (unpaid interest beyond your payment is waived, so your balance doesn't grow) and a principal match of up to $50/month if your payment doesn't cover that much principal — so your balance keeps moving down even on a low payment. The repayment term is 30 years (360 qualifying payments) before any remaining balance is forgiven, longer than IBR's 20–25 years.
Private lenders sometimes offer lower interest rates for refinancing federal loans. The catch: refinancing converts your federal loans permanently into private loans. You lose access to income-driven repayment, Public Service Loan Forgiveness eligibility, deferment and forbearance options, and all other federal borrower protections. Even a lower interest rate rarely compensates for these losses — especially if there is any chance you might need IDR or pursue PSLF in the future. Refinancing private loans (not federal) into a lower-rate private loan can save money; refinancing federal loans is almost never advisable.
What happens if I miss a payment? A single missed payment is typically reported as delinquent after 90 days and can affect your credit score. Federal loans enter default after 270 days of non-payment, which triggers wage garnishment eligibility and loss of eligibility for further federal aid. If you're struggling to make payments, contact your servicer before missing one — deferment, forbearance, or switching to an income-driven plan are all better options than missing payments.
Can I change repayment plans after I start? Yes, federal loan borrowers can switch repayment plans at any time, usually without penalty, by contacting their loan servicer. Switching to an income-driven plan when your income drops, or switching to a shorter plan when you get a raise, are both common and allowed. Private loans typically do not offer this flexibility — check your loan agreement.
Does paying extra reduce my monthly payment or just the term? Unless you specifically request a recast (recalculation of your monthly payment based on the new lower balance), extra payments shorten your loan term while your required monthly payment stays the same. Most federal servicers do not offer recasting — your minimum payment remains fixed even after extra payments, but you'll finish paying earlier.
Is it better to pay off student loans or invest extra money? This depends on your loan's interest rate compared to expected investment returns, and your risk tolerance. As a general rule, loans above 7-8% interest are usually worth prioritizing for payoff, while loans below 5% may be reasonable to pay at the minimum while investing extra funds — though this is a personal finance decision that depends on your full financial picture, not just interest rate comparison.
What happened to the SAVE plan? SAVE was replaced by the Repayment Assistance Plan (RAP) in July 2026. If you were previously enrolled in SAVE, check with your loan servicer about your transition timeline and new payment calculation under RAP.
Is REPAYE still an option? No — REPAYE was folded into the SAVE plan before SAVE itself was replaced by RAP in July 2026, so "REPAYE" no longer exists as a separate plan you can enroll in. If you're comparing old REPAYE numbers to today's options, RAP (for most borrowers) or IBR (if you had loans before July 2026 and haven't taken out new ones) are the closest current equivalents.
Are PAYE and ICR still available in 2026? Yes, but only for existing borrowers who took out all their loans before July 1, 2026, and don't take out new federal loans or consolidate afterward — and only until July 1, 2028, when both plans are scheduled to be phased out and remaining borrowers moved to RAP or IBR. Anyone borrowing a new federal loan on or after July 1, 2026 can no longer enroll in PAYE or ICR and is limited to RAP or the new Tiered Standard plan.
How does graduated repayment compare to standard repayment? Graduated repayment starts with lower payments that increase every two years, typically over a 10-year term, so total interest paid is higher than Standard repayment even though the initial monthly payment is lower. It's designed for borrowers who expect steadily rising income, like recent graduates early in their career. If your income is already stable, Standard repayment usually costs less overall because more of each early payment goes toward principal.
Do Parent PLUS loans have different repayment plan options? Yes. Parent PLUS loans aren't eligible for most income-driven repayment plans directly — parents must first consolidate into a Direct Consolidation Loan, which then qualifies only for Income-Contingent Repayment (ICR) among the income-driven options, not RAP or IBR. Standard, Graduated, and Extended repayment remain available without consolidation. This is a narrower set of options than borrowers have on their own federal loans, so run the numbers on this calculator using the Parent PLUS balance and rate specifically.
How is my income-driven (RAP) payment actually calculated? RAP payments are based on a bracketed percentage of your full AGI — 1% per $10,000 of income up to a 10% cap above $100,000 — divided by 12, then reduced by $50 per dependent, with a $10/month floor. Example: $50,000 AGI with one dependent falls in the 4% bracket: ($50,000 × 4%) ÷ 12 = $166.67, minus $50 = $116.67/month. See the bracket table above for the full range.
Student Loan Calculator — monthly payment and total cost for any loan amount.
Student Loan Repayment Plans (2026) — compare Standard, IBR, SAVE, and PSLF.
Federal vs Private Student Loans — which to borrow and repay first.
How Much Student Loan Debt Is Too Much? — the 1x salary rule explained.