Student Loan Repayment Calculator
Compare all repayment plans, simulate forgiveness, see tax bomb, and find your fastest path to freedom. Updated for the 2026 OBBBA rules.
*Estimates are for illustrative purposes and do not constitute official financial or legal advice. Your actual loan servicer terms may vary.
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This is an estimate for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified advisor or StudentAid.gov for official US federal loan guidance.
Plan Your Freedom
Add your loans above. We'll compare all repayment plans and show you the fastest, cheapest, and safest options.
Monthly Payment
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Total Paid
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Payoff Date
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Forgiveness Amount
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Estimates shown are based on standard U.S. guidelines and may vary by lender. Consult StudentAid.gov for official figures.
| Year | Balance | Principal Paid | Interest Paid | Total Payment |
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2026 Student Loan Overhaul: What You Need to Know
The One Bipartisan Basic Loan Act (OBBBA) took effect July 1, 2026. It simplifies federal loans into two new plans: Tiered Standard Plan (TSP) and Repayment Assistance Plan (RAP). Old plans (IBR, PAYE, SAVE) are only available for loans disbursed before that date.
Tiered Standard Plan (TSP)
Your repayment term depends on your total federal loan balance:
- Less than $25,000 – 10 years
- $25,000 – $50,000 – 15 years
- $50,001 – $100,000 – 20 years
- Over $100,000 – 25 years
This plan gives a fixed monthly payment that ensures you are debt‑free within the term. No forgiveness after that.
Repayment Assistance Plan (RAP)
Income‑driven, available for all federal loans (including new). Key features:
- Payments = 1‑10% of your AGI (sliding scale: lower income = lower percentage)
- Minimum payment: $10/month
- If your payment doesn't cover accruing interest, the government pays the rest (no negative amortization)
- Forgiveness after 30 years (taxable, unless PSLF)
Forgiveness & Tax Bomb
Under current law, forgiven amounts (except PSLF) are taxed as ordinary income. This “tax bomb” can be huge. Use our calculator to estimate the after‑tax cost.
Borrowing Caps (2026)
- Undergrad dependent: $5,500 – $7,500 per year
- Undergrad independent: $9,500 – $12,500 per year
- Graduate: $20,500 per year (aggregate limit $100,000)
- No new Grad PLUS or Parent PLUS after July 2026
Frequently Asked Questions
What are the new 2026 student loan repayment plans? ↓
The OBBBA introduces Tiered Standard Plan (TSP) with terms based on total debt (10‑25 years), and Repayment Assistance Plan (RAP), an income‑driven plan with payments from 1‑10% of AGI, capped at 30 years, after which remaining balance is forgiven (taxable).
How does interest capitalization work? ↓
During grace periods or deferment, unpaid interest is added to your principal. Our calculator lets you input grace months to accurately reflect your total debt when repayment begins.
What is the tax bomb on forgiven student loans? ↓
Under current law, forgiven loan amounts are treated as taxable income. We estimate the tax using your marginal bracket. Note: Some forgiveness programs (like PSLF) are tax‑free.
Can I include multiple loans? ↓
Yes! You can add up to 5 loans, each with its own balance, rate, term, type, and disbursement date. We aggregate everything for a complete picture.
What is the difference between IBR and the new RAP? ↓
IBR is available only for loans disbursed before July 2026. It caps payments at 10‑15% of discretionary income. The new RAP applies to all federal loans and uses a sliding scale of 1‑10% of AGI, with a $10 minimum. It also cancels interest not covered by the payment.
This tool is for informational purposes only and does not constitute financial advice.
Results are estimates based on user inputs and standard U.S. assumptions, including the OBBBA 2026 provisions. FinanceSmartUSA is not a lender, broker, or financial advisor.
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