Tiered Standard Repayment Plan Calculator
Estimate your monthly payment and repayment term under the new Tiered Standard Repayment Plan — the federal student loan plan created by the One Big Beautiful Bill Act, live since July 1, 2026.
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Estimated Monthly Payment
$302.32
Estimated • Based on your inputs
Repayment Term (Years)
15
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
Effective July 1, 2026, the One Big Beautiful Bill Act replaced the old flat 10-year Standard Repayment Plan with the Tiered Standard Repayment Plan for any federal Direct Loan first disbursed on or after that date. Unlike the old plan, your repayment TERM now depends on your starting principal balance: under $25,000 gets a 10-year term, $25,000-$49,999 gets 15 years, $50,000-$99,999 gets 20 years, and $100,000 or more gets 25 years. Your fixed monthly payment is calculated with the standard loan amortization formula over that term at your loan's interest rate, subject to a $50/month minimum (or your full remaining balance if it's under $50 — in which case the calculator solves for the actual number of months needed to pay it off at $50/month, which can be faster than the nominal tier term). This plan is income-independent — your payment doesn't change based on what you earn. Tiered Standard is also the plan you're automatically defaulted into if you don't actively choose a repayment plan. Critically, payments made under Tiered Standard do NOT count toward Public Service Loan Forgiveness (PSLF); borrowers pursuing PSLF need to enroll in RAP, IBR, or another qualifying plan instead.
How to Use This Student Loans Calculator
- 1
Enter your loan balance
Input the total outstanding balance across all your student loans. If you have multiple loans, combine federal and private balances for a complete picture.
- 2
Set your interest rate
Enter the weighted average interest rate across your loans. Federal Direct Loans for 2025–26 are around 6.53% (undergraduate). Private loans vary widely by lender and creditworthiness.
- 3
Choose a repayment plan
Compare Standard (10-year), Extended (25-year), Graduated, or income-driven plans (SAVE, PAYE, IBR, ICR). Income-driven plans cap payments at 10–20% of discretionary income.
- 4
Add extra payments (optional)
See how additional monthly payments accelerate payoff. Even $50/month extra on a $30K loan at 6% can save $2,500+ in interest and shave 2 years off repayment.
- 5
Review total interest paid
Compare the total cost under different repayment options. Lower monthly payments often mean dramatically higher total interest — the tradeoff is cash flow vs. total cost.
Example Calculation
Let's analyze a common student loan scenario for a graduate in a typical state.
A borrower has $35,000 in federal Direct Loans at a weighted average rate of 5.8%. Under the Standard 10-year plan, the monthly payment is approximately $386. Under the SAVE income-driven plan with a $45,000 salary, the payment drops to roughly $175/month — but extends repayment to 20+ years.
Result: Standard plan: $46,281 total paid ($11,281 interest). SAVE plan: ~$52,500 total paid, but monthly payments start much lower and increase with income. After 20 years of qualifying payments under SAVE, any remaining balance is forgiven — though forgiven amounts may be taxable. The right choice depends on your income trajectory and career plans.
What Affects Your Results
Interest Rate
Federal rates are set annually by Congress. Private rates depend on credit score, cosigner, and market conditions. A 2% rate difference on $30K adds ~$7,000 in total interest over 10 years.
Repayment Plan
Income-driven plans reduce monthly payments but extend repayment, often doubling or tripling total interest. Standard 10-year plans minimize total cost.
Income Growth
Income-driven payments increase as your salary grows. A fast-growing income may make standard repayment more cost-effective in the long run.
Loan Forgiveness Eligibility
PSLF (public service) and IDR forgiveness (20-25 years) can eliminate tens of thousands in remaining balance — but require consistent qualifying payments and employment.
State Tax Treatment
Some states tax forgiven student loan debt as income, while others exempt it. Check your state's rules before counting on forgiveness.
Tips & Best Practices
- Never miss a payment — set up autopay for a 0.25% interest rate reduction (offered by nearly all federal loan servicers and many private lenders).
- Check if your state offers student loan tax deductions beyond the federal $2,500 student loan interest deduction. Several states provide additional relief.
- If you work in public service (government, 501(c)(3) nonprofits), investigate Public Service Loan Forgiveness (PSLF) — tax-free forgiveness after 120 qualifying payments.
- Refinancing federal loans to a private lender can lower your rate but permanently eliminates access to income-driven repayment, PSLF, and federal forbearance/deferment protections.
- Pay more than the minimum, but specify that extra payments go toward principal — otherwise servicers may apply them to future payments, which doesn't reduce interest.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is the Tiered Standard Repayment Plan?
The Tiered Standard Repayment Plan is the new fixed-payment federal student loan repayment plan created by the One Big Beautiful Bill Act, available to any Direct Loan borrower whose loan is first disbursed on or after July 1, 2026. Unlike the old flat 10-year Standard plan, your repayment term (10, 15, 20, or 25 years) is set by your starting loan balance.
What are the Tiered Standard repayment terms by balance?
Under $25,000 in federal loans gets a 10-year term, $25,000 to $49,999 gets 15 years, $50,000 to $99,999 gets 20 years, and $100,000 or more gets 25 years. The minimum monthly payment is $50 (or your full balance if it is less than $50).
Does the Tiered Standard Plan qualify for PSLF?
No. Payments made under the Tiered Standard Repayment Plan do not count toward Public Service Loan Forgiveness. If you are pursuing PSLF, you need to enroll in the Repayment Assistance Plan (RAP), Income-Based Repayment (IBR), or another qualifying plan — Tiered Standard payments will not accumulate toward your 120 qualifying payments.
Is Tiered Standard or RAP better for me?
It depends on your income and goals. Tiered Standard gives a predictable, income-independent payment and pays your loan off in full within a fixed term with no forgiveness (except through PSLF, which it does not qualify for). RAP bases your payment on a percentage of your income, can mean lower payments early in your career, and offers forgiveness after 30 years (or 10 years under PSLF). Run both this calculator and our RAP Student Loan Calculator to compare your actual numbers before choosing.
What happens if I do not choose a repayment plan?
If you don't actively select a plan when you enter repayment on a loan disbursed on or after July 1, 2026, you are automatically defaulted into the Tiered Standard Repayment Plan.
Can I switch between Tiered Standard and RAP later?
Yes. Borrowers on the Tiered Standard plan can switch to RAP after entering repayment, and RAP borrowers can switch to Tiered Standard, giving you flexibility if your income or goals change.
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