Student Loan Calculator: Payments, RAP & Standard Plans

Estimate your monthly payment, the interest that builds during your grace period, and how different repayment plans change what you pay over time.

The short answer: a $35,000 federal undergraduate loan at the 2026–27 rate of 6.52% costs about $398 a month on a 10-year schedule, or about $305 a month on the 15-year term the new Tiered Standard plan assigns to balances of $25,000 to $49,999. Income-based payments under the new Repayment Assistance Plan (RAP) can be much lower, depending on your adjusted gross income and dependents.

This calculator is for informational purposes only, and its results are estimates. Your servicer's figures will differ based on your actual loans, disbursement dates, and plan rules.

What changed for student loans in 2026

The One Big Beautiful Bill Act (Public Law 119-21) rewrote federal student loan repayment starting July 1, 2026:

• Two plans for new loans. Borrowers with any loan made on or after July 1, 2026 choose between a Tiered Standard plan and the Repayment Assistance Plan (RAP). If you don't choose, you're placed in the standard plan.
• Older income-driven plans are closing. Borrowers in income-contingent plans (SAVE, PAYE, and ICR) must move to RAP, income-based repayment (IBR), or another eligible plan before July 1, 2028.
• Grad PLUS loans end for new borrowers. Graduate and professional students can't take new Grad PLUS loans for periods starting on or after July 1, 2026, with a transition period for students already enrolled and borrowing.
• New borrowing caps apply to graduate, professional, and parent borrowers (table below).

2026–27 federal interest rates

Rates for Direct Loans first disbursed July 1, 2026 through June 30, 2027, from Federal Student Aid:

Each loan keeps its rate for life. Loans from earlier years keep the rate set for their award year; for 2025–26 it was 6.39% for undergraduates. Private loan rates depend on the lender and your credit.

What each input means

How the calculator does the math

• Grace interest: loan amount × rate × (grace months ÷ 12) for unsubsidized loans. Since July 1, 2023, Direct Loans don't capitalize that interest when repayment starts, so the tool keeps it separate: payments cover it first, and it doesn't earn interest itself.
• Tiered Standard: a level payment over 10, 15, 20, or 25 years, chosen from your principal using the table below.
• Standard (older loans): a level payment over the term you enter, usually 120 months.
• Graduated (older loans): five payment levels that step up every two years and pay the loan off in 10 years. The tool uses the steepest schedule the rules allow, with the last payment three times the first, as long as the first payment covers the monthly interest. Your servicer sets the real steps, and graduated plans aren't available for loans made on or after July 1, 2026.
• RAP: the statutory formula below, applied month by month with the interest waiver and the $50 principal match, and forgiveness after 360 payments. Your AGI is held constant.
• IBR (older loans): 10% of AGI above 150% of the 2026 poverty guideline ($15,960 for one person, plus $5,680 for each additional family member), or 15% if you borrowed before July 1, 2014, capped at the 10-year standard payment. Forgiveness after 20 or 25 years.
• PSLF estimate: for RAP, IBR, and the 10-year standard plan, the balance left after 120 payments. Tiered terms longer than 10 years and graduated plans generally don't produce qualifying payments.

Worked example: the default inputs

$35,000 at 6.52%, a 6-month grace period on an unsubsidized loan, Tiered Standard plan:

• Grace interest: $35,000 × 6.52% × 0.5 = $1,141
• Balance entering repayment: $36,141
• Term: 15 years, because the principal is between $25,000 and $49,999
• Monthly payment over 180 months: $314.96
• Total paid: $56,691.95, of which $21,692 is interest including the grace-period interest

Switch the plan to the 10-year Standard plan (available only for loans made before July 1, 2026) and the payment rises to $410.53, but interest falls to $14,263. Under RAP with $45,000 of AGI and no dependents, the payment is $150 a month; about $2,989 of unpaid interest is waived and $13,160 of principal is matched over 30 years, and roughly $16,890 is forgiven after 360 payments.

The Tiered Standard plan

For loans made on or after July 1, 2026, the standard plan's term depends on your total principal when you enter repayment:

You can prepay at any time without penalty, so choosing the standard plan doesn't stop you from paying it off faster.

The Repayment Assistance Plan (RAP), step by step

RAP sets your payment from your adjusted gross income (including your spouse's if you file jointly) under the statute:

Monthly payment = base payment ÷ 12 − $50 per dependent, with a $10 minimum. The percentage applies to all of your AGI, not just the part above a threshold.

Two built-in protections:

• Interest subsidy: if your on-time payment doesn't cover the month's interest, the unpaid interest is waived.
• Principal match: if an on-time payment reduces principal by less than $50, the government reduces your principal so it drops by up to $50 (capped at what you paid).

After 360 qualifying payments (30 years), any remaining balance is forgiven.

Example 1: single, no dependents, AGI $45,000, $35,000 owed at 6.52%.

• Base payment: 4% × $45,000 = $1,800 a year → $150 a month
• Monthly interest: $35,000 × 6.52% ÷ 12 = $190.17
• The $150 payment covers interest only; the $40.17 shortfall is waived
• Principal match: the payment reduced principal by $0, so principal is cut by $50
• Your balance falls $50 a month instead of growing

Example 2: married filing jointly, two dependents, AGI $85,000.

• Base payment: 8% × $85,000 = $6,800 a year → $566.67 a month
• Dependent reduction: 2 × $50 = $100
• RAP payment: $466.67 a month

Parent PLUS loans, and consolidation loans that repaid them, aren't eligible for RAP.

Borrowing limits starting July 1, 2026

Schools can set lower limits for a program. Students enrolled before July 1, 2026 who already borrowed for that program can keep the old limits for up to three academic years. If your program costs more than the new caps, private loans are the gap filler, and they don't offer RAP, PSLF, or federal forgiveness.

Public Service Loan Forgiveness

PSLF still forgives the remaining Direct Loan balance after 120 qualifying monthly payments while you work full-time for a government or qualifying nonprofit employer. On-time RAP payments count, as do payments under the standard plan and IBR. PSLF forgiveness isn't taxable. Under a 10-year standard schedule there's nothing left to forgive, so PSLF only pays off when you use an income-based plan.

Tax breaks tied to student loans

• Student loan interest deduction: up to $2,500 a year. For 2026, it phases out between $85,000 and $100,000 of modified AGI for single filers and between $175,000 and $205,000 for joint filers (Rev. Proc. 2025-32).
• Education credits for the years you're in school: the American opportunity credit for the first four years of college, and the lifetime learning credit for graduate school or courses. See lifetime learning credit income limits and the education tax credits calculator.
• Forgiveness taxes: income-driven forgiveness after 2025 may be taxable federally; plan for it if you expect a large forgiven balance.

Ways to pay less

• Pay interest during the grace period on unsubsidized loans so it doesn't add to your balance.
• Enroll in autopay; servicers typically offer a small rate reduction for it.
• Target the highest-rate loan first with any extra payment, such as PLUS before undergraduate loans.
• Recertify income on time under RAP or IBR. If you don't, your payment can jump to the 10-year standard amount.
• Run your loan through the amortized loan calculator to see how an extra $50 or $100 a month shortens the term.
• Save ahead for younger children in a 529 plan to reduce future borrowing; the 529 vs. UTMA calculator compares the options.