Revised Pay As You Earn (REPAYE)
Student Loan Calculator - January 2021
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Revised Pay As You Earn (REPAYE) is a government program that can help you save money on your student loans. Use our calculator to see how REPAYE may be able to lower your monthly student loan payments.
The REPAYE plan now allows some borrowers to cap their monthly student loan payments at 10% of their discretionary income. It also offers student loan forgiveness after 20 years (240 payments) for borrowers with undergraduate student loans only. If you have graduate student loans, it will be 25 years (300 payments).
Plug in some numbers on our REPAYE calculator and see how much you could save with this program.
Revised Pay As You Earn (REPAYE)
Learn everything you need to know about the REPAYE program with this article written by the experts at DollarGeek.
FAQs: Revised Pay As You Earn (REPAYE) Calculator
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Learn about the Revised Pay As You Earn (REPAYE) program
Gain some clarity with our geeky insight.
What is the Revised Pay As You Earn (REPAYE) Calculator?
Our Revised Pay As You Earn (REPAYE) student loan calculator will show you your monthly student loan payment under the REPAYE program. It will also show you how much student loan forgiveness you can receive after 20 years of payments (minimum amount of years before you’re eligible for forgiveness). Our Revised Pay As You Earn (REPAYE) student loan calculator can show you how much this federal program can impact your payments.
How much can I expect to pay a month with Revised Pay As You Earn (REPAYE)?
Under the REPAYE program, you can expect your payments to be 10% of your discretionary income. To calculate your discretionary income you take your Adjusted Gross Income (AGI) minus 150% of the state poverty guideline for your family size.
Also, be sure not to forget that there is no cap on your monthly payments with REPAYE. This matters because while you could qualify for a monthly payment as low as $0, it’s also a possibility you can pay higher than the typical standard repayment plan if your income increases. So, if you start making more money, expect your monthly student loan payment to as well because there is no cap on your monthly payments with REPAYE.
When can I expect student loan forgiveness with Revised Pay As You Earn (REPAYE)?
Unfortunately it takes some time to get your student loans forgiven. Under REPAYE, the balances for undergraduate degree student loans will be forgiven after you make 20 years of eligible payments (240 monthly payments). Balances for graduate and professional degrees, or a combination of both are forgiven after 25 years of eligible payments (300 monthly payments).
According to the IRS, the balance that you have forgiven under REPAYE will be considered taxable income, so make sure to plan ahead.
Can I enroll in Revised Pay As You Earn (REPAYE) if I have Parent PLUS loans?
No. The only income-driven plan that allows Parent PLUS loans is ICR.
What student loan types aren't eligible for Revised Pay As You Earn (REPAYE)?
The following loans are not eligible for the REPAYE program:
• Parent PLUS Loans
• FFEL PLUS Loans borrowed by parents
• Direct Consolidation Loans used to repay a Parent PLUS Loan
• Private student loans
Beside REPAYE, what are my other Income-Driven repayment options ?
There are three other Income-Driven repayment options offered by the federal government. Check out Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income Contingent Repayment (ICR). These plans are typically better options for borrowers who are eligible as they have lower monthly payment caps (10% – 15%) as well as shorter repayment periods until forgiveness (sometimes as little as 20 years).
Is student loan forgiveness through Revised Pay As You Earn (REPAYE) taxable?
Yep. According to the IRS, student loan forgiveness received through REPAYE is generally considered taxable income.
What variables does the Revised Pay As You Earn (REPAYE) calculator consider?
For the REPAYE Calculator to provide an accurate estimate, we had to make some common assumptions. Please consider these options carefully. Our REPAYE calculator assumes:
• Your family size will remain the same during the life of the loan and poverty guidelines will increase based on the Congressional Budget Office’s estimate of inflation.
• The current interest rate you have will not change during the life of the loan (even for loans with variable interest rates).
• All loans are unsubsidized loans for the purposes of interest accumulation.
• You meet all of the eligibility requirements to enroll in the REPAYE program.