Student Loan Payoff Flow
Compare standard payoff with extra payments and income-driven repayment to lock the cheapest path.
Get payoff timeline, total interest, and IDR comparison.
Why this flow matters
Student loans are the only debt where two valid strategies (aggressive payoff vs income-driven repayment with forgiveness) can lead to a 5-figure swing in lifetime cost. This flow runs both side-by-side so the choice is informed, not default.
Your diagnosis
Standard payoff in 8.3 years.
- LaterSet autopay - most servicers give a 0.25% rate discount
Your inputs
Edit any value - the diagnosis above updates instantly.
How the math works
The exact rules and formulas this flow applies - no black box.
- 1.Standard payoff uses the closed-form amortization formula on combined balance + APR.
- 2.IDR monthly payment = discretionary income x IDR percent / 12 (10% is standard for newer plans).
- 3.Discretionary income = AGI - 150% of poverty line (simplified to direct input here for transparency).
- 4.Standard interest cost = total monthly payments x months - principal.
How to read your result
- IDR payment much lower than standard: IDR is tempting for cash flow, but you may pay more interest unless forgiven.
- Standard payoff < 10 years: you are likely better off paying it down - IDR forgiveness is 20-25 years.
- Refinance candidacy: if APR > 7% and credit is strong, private refinance can beat both options. Lose federal protections though.
Common questions
Will my loans be forgiven on IDR?
After 20-25 years on most IDR plans (10 years for PSLF if eligible). The forgiven amount may be taxable as income depending on the year.
Should I refinance federal loans?
Only if you do not need IDR, PSLF, or income-based forbearance. Refinancing is permanent - you cannot go back to federal.
Avalanche or snowball for student loans?
Avalanche if all loans are similar. Snowball if you have many small subsidized loans - clearing them frees cash flow.