SAVE vs PAYE vs IBR vs ICR. Which IDR plan wins for you?
Federal income-driven repayment plans cap your monthly payment at a percentage of discretionary income. Different plans, different caps, different forgiveness timelines.
Your situation
$80K
$130K
1
Affects poverty line (HI / AK higher).
SAVE (Saving on a Valuable Education)
Newest plan. Most generous discretionary-income protection. Currently in legal limbo.
Monthly payment$0
Forgiveness in25 yrs
Total paid$0
Forgiven$0
PAYE (Pay As You Earn)
10% of discretionary income. Caps at standard 10-year payment.
Monthly payment$0
Forgiveness in20 yrs
Total paid$0
Forgiven$0
IBR (Income-Based Repayment)
10-15% of discretionary. Available to all FFEL/Direct borrowers.
Monthly payment$0
Forgiveness in25 yrs
Total paid$0
Forgiven$0
ICR (Income-Contingent Repayment)
20% of discretionary OR 12-yr fixed equiv (whichever is less).
Monthly payment$0
Forgiveness in25 yrs
Total paid$0
Forgiven$0
Our take
Estimates use 2026 federal poverty guidelines and standard IDR formulas. Actual payments depend on tax filing status, family size verification, IDR recertification, and federal policy. SAVE remains under legal challenge as of 2026; verify current availability at StudentAid.gov before enrolling. Not financial advice.
Quick reference
SAVE uses a higher discretionary income threshold (225% of poverty line vs. 150% for older plans) and caps grad-debt payments at 10%. Its biggest feature is no negative amortization: the government waives unpaid interest each month. Currently subject to ongoing litigation.
PAYE caps at 10% of discretionary income (150% poverty), payments capped at standard 10-year amount, forgiveness at 20 years. Better than IBR for most borrowers.
IBR caps at 10% (new borrowers) or 15% (older borrowers). Forgiveness at 25 years (or 20 for new borrowers). Always available; oldest IDR plan.
ICR caps at 20% of discretionary or a 12-year amortization equivalent, whichever is lower. Mostly used by parent PLUS borrowers (the only IDR option for them after consolidation).
Key reminders
Federal Direct Loans only. Private loans don't qualify for IDR.
Recertify annually. Missing recertification can spike your payment.
Forgiveness under non-PSLF IDR is currently treated as taxable income at year 20-25 (federal tax). PSLF forgiveness is tax-free.
If pursuing PSLF, all IDR plans get you to forgiveness in 10 years. Use whichever has the lowest monthly payment for your situation.