Repayment plans: Standard, IDR, SAVE, PSLF, refinance
Federal student loan plans are a menu, not a default. Picking wrong can cost (or save) tens of thousands.
The plan menu
- •STANDARD (10 yr) — fixed payment, fastest payoff, most you'll ever pay per month.
- •GRADUATED — starts low, steps up every 2 years.
- •SAVE / IBR / PAYE (IDR) — payment based on income (~10–15% of discretionary). Forgiveness after 20–25 years.
- •PSLF — work full-time for gov / 501(c)(3) for 10 years on an IDR plan → balance forgiven, tax-free.
- •REFINANCE → private — usually lower rate, but you LOSE all federal protections.
Once you refi to a private lender, you can never go back. You lose IDR, PSLF, and all federal forbearance options. Only refi if you're certain you'll never need any of them.
Government (federal/state/local) and 501(c)(3) nonprofits. Doctors at non-profit hospitals, teachers, public defenders, social workers — all common qualifiers. Use the Employer Search tool on studentaid.gov.
−$138/month
Teacher's SAVE vs Standard savings
Public-school teacher with $42k of loans on $48k salary, family of 1. SAVE: $128/mo. Standard: $266/mo. Saves $138/mo to invest, save, or live.
Try it yourself
Run your real federal loan numbers across Standard, SAVE, IBR, and PSLF-on-SAVE.
| Plan | Monthly | Total paid |
|---|---|---|
| Standard (10 yr) | $477 | $57,228 |
| SAVE (10% disc.) | $118 | $28,230 |
| IBR (15% disc.) | $176 | $52,931 |
| PSLF on SAVE | $118 | $14,115 |
Cheapest path on these numbers: PSLF on SAVE at $118/mo. PSLF wins big when you qualify (gov / 501(c)(3)). Standard wins when income is high enough to attack principal fast.
Real life: meet Maria's PSLF math
Maria works at a 501(c)(3) hospital with $80k of loans on $58k AGI. On SAVE: ~$240/mo. After 10 years and 120 qualifying payments: balance forgiven (tax-free under PSLF). Total paid: ~$28,800 vs $109,000 on Standard.
$28,800 paid vs $109,000 on Standard
Takeaway
Run your real numbers in the IDR vs Standard widget. If you work for gov or 501(c)(3), PSLF on SAVE is almost always the move.
What permanent thing do you give up by refinancing federal student loans into private?
Takeaway: The right repayment plan depends on income, employer, and forgiveness eligibility — not on the lowest monthly payment alone.
Try together: Use the IDR vs Standard widget with the learner's actual loan numbers. Then check PSLF employer eligibility at studentaid.gov.