What assumptions do the repayment estimations make?

Your Action Plan includes estimates of your monthly student loan payments under each of your eligible repayment plans. This can help you choose a payment that is affordable. These payment amounts are based on several assumptions that may or may not apply to you specifically. To discuss actual monthly payment amounts, contact your loan servicer.

  • Repayment Period. We assume that you have just entered repayment and estimate your payments assuming that you still have the full repayment period to repay your loans. For example, for the extended repayment plan, we calculate your payments under this plan using the full 25-year repayment period, even if your actual remaining repayment period is less than 25 years. We also assume that you'll pay continuously throughout the repayment period with no breaks for deferment or forbearance.
  • Discretionary Income. We assume that your income will grow 5% each year, that your family size will remain the same during the life of the loan, and that the federal government’s poverty guidelines will increase based on the Congressional Budget Office's (CBO) estimation of inflation.
  • Variable Interest Rates. For loans with variable interest rates, we assume that the current interest rate won't change during the life of the loan.
  • Consolidation Loans. We assume that Direct and FFEL Consolidation Loans don't contain any underlying loans made to parents, which are ineligible for the REPAYE, PAYE, and IBR plans.

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