Standard, tiered, graduated and extended outputs are arithmetic scenarios. IBR/PAYE columns freeze 2026 payment formulas and poverty guidelines; future transitions, eligibility and discharge are unsupported.
Standard vs. Income-Driven Plans
This tool accrues monthly interest on principal at the entered note rate / 12. It keeps historical unpaid interest separate and does not infer daily servicing or capitalization events.
Cash pays accrued interest before principal. Eligible full/on-time RAP months waive newly unpaid monthly interest, then add max(0, min($50, cash paid) − borrower principal paid), clipped to remaining principal.
The Power of Extra Payments
Extras may shorten repayment and reduce interest, but may also reduce potential forgiveness. RAP benefits require the stated full/on-time, no-paid-ahead assumption; confirm actual payment allocation with your servicer.
Read borrower cash, paid interest, interest subsidy, principal support and remaining debt separately. A remaining balance is not an approved discharge, and future taxes are unknown.
Refinancing Considerations
The model does not assess refinancing eligibility or recommend a private offer. Selecting private debt disables RAP/PSLF projections here; compare actual contracts and verify any loss of federal protections separately.
Future forgiveness tax is unknown. Optional federal and state rates are hypothetical, not a forecast. The current federal PSLF exclusion is separate; unknown tax or eligibility cannot establish a universal best plan.