The Department of Education has rolled out an upgraded income-driven repayment calculator across all federal student loan servicer websites. The new tool allows borrowers to compare all four IDR plans side by side, factoring in projected salary growth, filing status changes, and potential loan forgiveness timelines.
Borrowers can now input multiple income scenarios to see how career changes or raises would affect their monthly payments and total repayment amounts. The calculator also flags whether borrowers qualify for the SAVE plan's interest subsidy, which prevents unpaid interest from capitalizing.
Financial aid experts recommend all borrowers with federal loans run the new calculator before their next annual recertification to ensure they're on the most advantageous plan.
