PAYE Student Loan Payment Calculator
Pay As You Earn (PAYE) caps your federal student loan payment at 10% of your discretionary income — what you earn above 150% of the federal poverty line. This calculator estimates your monthly payment and forgiveness timeline.
How this calculator works
Under PAYE, your discretionary income is your AGI minus 150% of the federal poverty guideline for your family size (2026: $15,960 for one person, $21,640 for two, $27,320 for three, $33,000 for four, plus $5,680 per additional person). Your payment is 10% of that discretionary income, divided by 12. Any remaining balance is forgiven after 20 years of qualifying payments. PAYE is only available to borrowers with loans taken after October 1, 2007, and you must have a partial financial hardship to enter the plan.
Frequently asked questions
How is PAYE different from SAVE?
The SAVE plan, which replaced REPAYE, has been blocked by court rulings since 2025 and is not accepting new enrollments. PAYE and IBR remain available for borrowers who qualify, and the 10% discretionary formula here is also the framework ICR-adjacent plans use.
When is my PAYE payment recalculated?
You recertify your income and family size every year. If your income rises sharply, your payment can increase — but under PAYE it never exceeds what you would pay on the standard 10-year plan.
Is forgiven student loan debt taxable?
Forgiven federal student loan debt is excluded from taxable income under current law (made permanent by the 2025 tax law). Future legislation could change this — plan for the possibility that forgiveness could be taxed in years ahead.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.