Sample Repayment Amounts

Sample Repayment at $300,000

Assumptions

• $300,000 federal student loan debt
  • Maximum of $40,500 direct unsubsidized and remainder direct PLUS (aka Grad PLUS) each year, even disbursements
• Applicable interest rates for Class of 2028 graduate, with CARES Act accommodated in rates
• Current interest rates used for 2024-25 with 8.00% and 9.00% used for remaining three years for direct unsubsidized and direct PLUS respectively
• Six-month window period (grace and deferment) prior to entering repayment
• $200,000 starting salary, moderate increase each year
• Single, family size of one used for repayment estimates with the income plan Income Based Repayment (IBR)
• No aggressive payments and loans held to term

Payment

Notes

• AAMC/ADEA Dental Loan Organizer and Calculator used for all repayment calculations.
• Time-driven plans (Standard and Extended) are not generally considered eligible plans for Public Service Loan Forgiveness (PSLF), hence NA referenced.
• With time-driven plans, the debt is paid in full by the end of the term, thus there is nothing to forgive at the end of the term. Note that with the income plan IBR (Income Based Repayment), the debt is not retired by year 20, thus the remaining term forgiveness amount of $288,068.  This is because the minimum payments were not covering the monthly interest, causing the balance to grow.
• Payments with IBR are based on income and family size and change on an annual basis. Therefore, the payment range shows the initial payment upon entering repayment and the last payment at year 20.
• Under current tax law, the forgiveness amount with PSLF is not considered taxable income for federal tax purposes, while the forgiveness amount under term forgiveness is considered taxable income the year forgiven.
• PSLF Paid is the amount a borrower would pay over 10 years while making minimum payments with IBR.
• PSLF Forgiven is the amount still remaining that would be forgiven tax-free under the PSLF program.

January 2025