Repaye Payment Calculator

Managing student loan debt is one of the biggest financial challenges for college graduates. Fortunately, income-driven repayment (IDR) plans like REPAYE (Revised Pay As You Earn) offer borrowers a way to make monthly payments based on their income and family size rather than the amount they owe.

The Repaye Payment Calculator is a tool that helps you estimate your monthly payments under the REPAYE plan. By entering your income, family size, and loan details, you can quickly see how much you would pay each month. This makes it easier to budget, plan repayment, and decide whether REPAYE is the right option for you.

REPAYE Payment Calculator

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How to Use the Repaye Payment Calculator

Using the calculator is straightforward. Here’s a step-by-step process:

  1. Enter Your Income:
    Input your adjusted gross income (AGI), usually from your tax return.
  2. Provide Family Size:
    REPAYE takes into account the number of people in your household.
  3. Input Loan Balance and Interest Rate:
    While REPAYE payments are based on income, knowing your loan details helps project long-term repayment.
  4. Select Poverty Guideline Region:
    U.S. poverty guidelines vary for the 48 states, Alaska, and Hawaii.
  5. Review Estimated REPAYE Payment:
    The calculator will display your expected monthly payment under REPAYE.

Formula Behind the REPAYE Plan

The REPAYE payment amount is based on your discretionary income, calculated as:

Discretionary Income = AGI – (150% × Federal Poverty Guideline for family size and location)

Then, monthly REPAYE payment is:

REPAYE Monthly Payment = (10% × Discretionary Income) ÷ 12

Key Points:

  • Payments adjust each year based on income and family size.
  • Unlike PAYE, REPAYE does not cap payments at the standard 10-year amount.
  • After 20 years (undergraduate loans) or 25 years (graduate loans), remaining balance may be forgiven (though taxable under current law).

Example Calculations

Example 1 – Single Borrower, $40,000 Income

  • AGI = $40,000
  • Family Size = 1
  • Poverty Guideline (48 states, 2025) ≈ $15,060
  • 150% of Poverty = $22,590
  • Discretionary Income = $40,000 – $22,590 = $17,410
  • Annual Payment = 10% × $17,410 = $1,741
  • Monthly Payment ≈ $145

Example 2 – Married with Two Children, $70,000 Income

  • AGI = $70,000
  • Family Size = 4
  • Poverty Guideline ≈ $31,200
  • 150% of Poverty = $46,800
  • Discretionary Income = $70,000 – $46,800 = $23,200
  • Annual Payment = 10% × $23,200 = $2,320
  • Monthly Payment ≈ $193

Example 3 – Graduate Loans, $55,000 Income

  • AGI = $55,000
  • Family Size = 2
  • Poverty Guideline ≈ $20,440
  • 150% of Poverty = $30,660
  • Discretionary Income = $55,000 – $30,660 = $24,340
  • Annual Payment = 10% × $24,340 = $2,434
  • Monthly Payment ≈ $203

Benefits of Using a Repaye Payment Calculator

  • Instant Estimates: Quickly see how much your monthly payment will be.
  • Better Budgeting: Helps plan finances based on realistic payments.
  • Family Considerations: Takes household size into account for fairness.
  • Loan Forgiveness Insight: Understand long-term repayment vs. forgiveness.

Helpful Insights

  • REPAYE may lead to interest subsidies, reducing unpaid interest accrual.
  • Unlike PAYE, spousal income is always included, even if filing separately.
  • Payments may increase as income grows, since there’s no payment cap.
  • REPAYE is ideal for borrowers with high debt-to-income ratios.

20 Frequently Asked Questions (FAQs)

Q1. What is REPAYE?
It’s an income-driven repayment plan where payments equal 10% of discretionary income.

Q2. How is REPAYE different from PAYE?
REPAYE has no payment cap and always includes spousal income.

Q3. Who qualifies for REPAYE?
All Direct Loan borrowers, regardless of when they borrowed.

Q4. How do I apply for REPAYE?
Through the Federal Student Aid website by submitting an IDR application.

Q5. How often do payments change?
They are recalculated yearly based on income and family size.

Q6. What if my income drops mid-year?
You can request a recalculation by providing updated income documentation.

Q7. Is there loan forgiveness with REPAYE?
Yes, after 20 years (undergrad loans) or 25 years (grad loans).

Q8. Is forgiven debt taxable?
Under current law, forgiven debt is taxable after 2025.

Q9. Can I switch from REPAYE to another plan?
Yes, but you must request it through your servicer.

Q10. Does REPAYE cover Parent PLUS Loans?
No, Parent PLUS loans are not eligible.

Q11. Can I include my spouse’s income?
Yes, REPAYE always considers household income, regardless of filing status.

Q12. What happens if I don’t recertify income?
Your payment reverts to the standard 10-year plan.

Q13. Does REPAYE offer interest subsidies?
Yes, it covers 50% of unpaid interest on subsidized and unsubsidized loans.

Q14. Is REPAYE good for high-income borrowers?
Not always, since payments can exceed standard plan amounts over time.

Q15. How do I know if REPAYE is right for me?
Use the Repaye Payment Calculator to compare payments with other plans.

Q16. Can I pay extra on REPAYE?
Yes, you can make additional payments anytime.

Q17. Is REPAYE available for FFEL loans?
No, only Direct Loans qualify.

Q18. Does REPAYE affect Public Service Loan Forgiveness (PSLF)?
Yes, REPAYE counts as a qualifying repayment plan for PSLF.

Q19. How long does it take to enroll in REPAYE?
Usually a few weeks after submitting your application.

Q20. Can I leave REPAYE anytime?
Yes, you can switch to another plan if it suits you better.

Final Thoughts

The Repaye Payment Calculator is an essential tool for borrowers considering income-driven repayment. By helping you estimate monthly payments based on income and family size, it provides clarity and confidence in managing student debt.

While REPAYE offers flexibility, it’s not the perfect fit for everyone—especially high earners whose payments may rise significantly. However, for borrowers with high loan balances relative to income, REPAYE can provide much-needed relief and even loan forgiveness after two decades.