Frequently Asked Questions
What is the standard student loan repayment plan?
The standard plan has fixed monthly payments over 10 years. It results in the lowest total interest paid but the highest monthly payment compared to income-driven plans.
What is PSLF?
Public Service Loan Forgiveness (PSLF) forgives remaining federal student loan balances after 120 qualifying payments (10 years) while working full-time for a qualifying employer (government or 501(c)(3) nonprofit).
Should I use income-driven repayment?
Income-driven plans (SAVE, PAYE, IBR, ICR) cap payments at 10-20% of discretionary income. They lower monthly payments but extend the loan term and increase total interest. Best for borrowers with high debt relative to income.
What is the SAVE repayment plan?
The SAVE (Saving on a Valuable Education) plan caps payments at 10% of discretionary income for undergraduate loans. Any remaining balance is forgiven after 20-25 years. It replaced the REPAYE plan and offers the lowest payments for low-income borrowers.
Should I refinance my student loans?
Refinancing can lower your interest rate if you have good credit (700+) and stable income. However, refinancing federal loans into a private loan loses federal protections like IDR, PSLF, and forbearance. Only refinance federal loans if you won't need these safety nets.
How much student loan interest can I deduct?
You can deduct up to $2,500 in student loan interest per year on your US federal tax return (Form 1098-E). The deduction phases out at $80,000 MAGI (single) or $165,000 (married filing jointly) for 2026.