Head to head
IBR vs Standard: which costs less after SAVE?
Income-Based Repayment (IBR) against Standard 10-year, rule by rule and with real numbers for four borrowers, from the same engine that ranks your plans.
Rank every plan for me, free Ten questions, two minutes, your own numbers.
The short answer
IBR costs less all in for two of the four sample borrowers and Standard for two; IBR has the lower first payment for all of them. A lower bill and a lower total are different questions, and the answer turns on income, balance and how each plan ends, so the table shows all of it.
Four borrowers, both plans
| Borrower | IBR a month | IBR all in | Standard a month | Standard all in | Lower all in |
|---|---|---|---|---|---|
| $38,000 income, $27,000 in loans | $117 | $35,596 | $307 | $36,790 | IBR |
| $46,000 income, $58,000 in loans | $184 | $63,762 | $659 | $79,029 | IBR |
| $55,000 income, $48,000 in loans | $259 | $72,742 | $545 | $65,404 | Standard |
| $85,000 income, $95,000 in loans | $509 | $143,324 | $1,079 | $129,445 | Standard |
Assumes single, a family of one, first loan after July 1, 2014, a 6.5% rate, no public service, flat income, and a 22% tax on any taxable forgiveness. Your own numbers change the order. How each ends: $38: IBR $33,980 forgiven after 20 years, Standard paid off in 10 years; $46: IBR $89,280 forgiven after 20 years, Standard paid off in 10 years; $55: IBR $48,280 forgiven after 20 years, Standard paid off in 10 years; $85: IBR $96,380 forgiven after 20 years, Standard paid off in 10 years.
Rule by rule
Payment
IBR
10% of discretionary income if your first federal loan was made on or after July 1, 2014 ("new borrower" IBR), 15% if earlier. Discretionary income is adjusted gross income minus 150% of the poverty guideline for your family size. The payment never exceeds the 10-year Standard amount set when you enroll. Married filing separately counts only your income, not your spouse's; filing jointly counts both.
Standard
A level payment that clears the balance in 120 months at your rate. It does not change with income.
Who qualifies
IBR
Direct and FFEL loans made before July 1, 2026. The partial financial hardship test was removed by the 2025 law, so nearly everyone with eligible loans qualifies, though some servicer tools still show "not eligible"; the paper form is the way through when that happens. Parent PLUS loans are excluded. A new loan or consolidation on or after July 1, 2026 removes IBR access.
Standard
Loans made before July 1, 2026. Later loans use the Tiered Standard plan.
Forgiveness
IBR
After 20 years of qualifying payments for new borrowers, 25 for earlier borrowers. Earlier payments under IBR, PAYE, ICR and SAVE count. Months in RAP do not.
Standard
None. The balance is paid in full.
Interest
IBR
For the first three years, unpaid interest on subsidized loans is covered by the government. Other unpaid interest accrues but is not capitalized while you stay in IBR. Leaving IBR for another plan capitalizes it once.
Standard
All interest is paid; nothing accrues unpaid because the payment always covers it.
PSLF
IBR
Qualifies.
Standard
Qualifies, though a 10-year plan pays the loan off in the same 120 payments, so little is left to forgive.
Taxes
IBR
Forgiveness after 20 or 25 years is taxable federal income from 2026. PSLF forgiveness is not.
Standard
Nothing is forgiven, so nothing is taxed.
How to apply
IBR
Online at studentaid.gov/idr. Choose IBR by name; "the plan with the lowest payment" lets the servicer choose. Consent to the IRS data share.
Standard
Request it from your servicer, online or with the Repayment Plan Request form. Borrowers who do nothing are placed on it when the 90-day window closes.
Leaving it
IBR
Moving from the SAVE forbearance into IBR does not capitalize interest. Moving out of IBR later does, once. You can move to RAP if your loans predate July 2026.
Standard
You can move to an income-driven plan at any time; confirming Standard yourself avoids a surprise bill date.
Dates
IBR
No sunset for loans made before July 1, 2026.
Standard
No end date.
Who each one fits
IBR is good for
- Higher earners: the Standard-payment cap limits what you pay
- Borrowers close to 20 or 25 years of income-driven payments
- Anyone who wants the option to switch to RAP later
Watch out
- Unpaid interest accrues (except subsidized loans for three years)
- Leaving IBR capitalizes unpaid interest once
- The 15% version and 25-year clock for loans before July 2014
Standard is good for
- Balances small against income, where the payment is affordable and the total is lowest
- Paying off fast
Watch out
- The highest monthly payment of the fixed plans
- No forgiveness
Which one wins for you depends on your numbers.
Right Repay runs IBR, Standard and every other federal plan on your income, household, balance and loan dates, ranks them on all-in cost, and shows the math. Positions 2 onward are free; the kit to switch is $29.
Rank my plans, freeSources
- 34 CFR 685.209, income-driven repayment plans Code of Federal Regulations
- Income-driven repayment plans Federal Student Aid
- Top FAQs about income-driven repayment plans Federal Student Aid
- IDR Plan Request, official PDF (OMB 1845-0102) Federal Student Aid
- IBR vs. RAP: key differences AccessLex Institute
- IBR vs RAP Tate Law
- Income-driven repayment Student Loan Borrower Assistance (NCLC)
- 34 CFR 685.208, repayment plans Code of Federal Regulations
- Repayment plans Federal Student Aid
- Next steps for borrowers enrolled in the SAVE Plan (press release) U.S. Department of Education
- Repayment Plan Request for Standard, Graduated and Extended (PDF) Federal Student Aid