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Pay As You Earn (PAYE) Student Loan Calculator​

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Check out how enrolling in the Pay As You Earn (PAYE) can lower your student payments. Use DollarGeek's Pay As You Earn (PAYE) Calculator to see how PAYE may be able to lower your monthly payments as well as result in forgiveness of your student loans. Under this federal program, PAYE limits your monthly student loans to 10% of your discretionary income. After 20 years of repayment (240 total payments), borrowers are eligible to have their remaining student loan balance forgiven on qualifying loans. Remember that the whatever amount you are forgiven after 20 years will be taxed.

Personal Info
Adjusted Gross Income
$
Family size
State of residence
Annual Income Growth
%
Loan info
Total federal student loan balance
$
Current monthly payment
$
Avg. weighted interest rate
%

Is this federal program right for you?

Use our Pay As Your Earn (PAYE) Calculator and see if you can save.

Fun Fact: (PAYE) is one of four Income-Driven Repayment Plans offered by the government.

PAYE Program - Everything You Need To Know

Learn everything you need to know about the Pay As You Earn (PAYE) program with this article written by the experts at DollarGeek.

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Learn More About PAYE

Gain some clarity with our geeky insight.

What is the Pay As You Earn (PAYE) Calculator?

Our Pay As You Earn (PAYE) student loan calculator will show you how much you’ll pay each month for your student loans under the federal PAYE repayment program. Our PAYE calculator will also show you how much student loan forgiveness you can receive after 20 years of payments under the plan. Pay As You Earn (PAYE) is one of four options available under the IDR program.

How much can I expect to pay a month with Pay As You Earn (PAYE)?

Under the Pay As You Earn (PAYE) program, your student loan payment is limited to 10% of your discretionary income. After you make 20 years of qualifying payments, you are eligible for the remaining balance to be forgiven. Don’t forget that the amount you are forgiven will still be taxed. Use our Pay As You Earn calculator and see what kind of savings you can expect on your student loans.

When can I expect student loan forgiveness with Pay As You Earn (PAYE)?

You will be eligible for forgiveness after you make 20 years of eligible payments (240 monthly payments). 

According to the IRS, the balance that you have forgiven under PAYE will be considered taxable income, so make sure to plan ahead.

Who is eligible for Pay As You Earn (PAYE)?

These plans can be a little complicated, so make sure to understand the requirements. Also, keep in mind that DollarGeek’s PAYE student loan calculator doesn’t guarantee that you automatically qualify for the PAYE program.

To be eligible for PAYE, you want to make sure:

1. You are a new student loan borrower as of October 1, 2007 or after.

2. You must have received a disbursement of a Direct Loan on or after October 1, 2011.

3. Your payment under the PAYE program will be less than your payment would be under the 10-year Standard Repayment Plan.

Is student loan forgiveness under Pay As You Earn (PAYE) taxable?

Yep. Since PAYE is a federal student loan repayment plan, any forgiveness you receive will be considered taxable.

What type of student loans qualify for Pay As You Earn (PAYE)?

There are a lot of student loans that qualify for PAYE. It’s important to remember that only federal student loans are eligible. So, if you have private student loans, you’ll be out of luck. Check out the loans that qualify for PAYE below:

  • Unsubsidized Direct Loans
  • Subsidized Direct Loans
  • Direct PLUS Loans (only for graduate or professional students)
  • Direct Consolidation Loans
  • Federal Stafford Loans
  • FFEL PLUS Loans (only for graduate or professional students)
  • FFEL Direct Consolidation Loans
  • Federal Perkins Loans (if consolidated)

What type of student loans DO NOT qualify for Pay As You Earn (PAYE)?

  • Parent PLUS Loans
  • Private student loans
  • FFEL PLUS Loans borrowed by parents
  • Direct Consolidation Loans used to repay a Parent PLUS Loan

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