The average federal student loan payment is between $200 and $300 per month

The actual amount you pay depends on your loan balance, the repayment plan you choose, and your income if you're on an income-driven plan. Someone with $30,000 in federal loans on the standard 10-year plan pays roughly $300 monthly. Someone with $10,000 pays roughly $100. Private loans vary widely based on the lender's terms and your credit score at the time you borrowed.

These numbers shift significantly if you're on an income-driven repayment plan—where your payment is calculated as a percentage of your discretionary income rather than a fixed amount. On SAVE (Saving on a Valuable Education), the newest income-driven plan, you might pay $0 per month if your income is low enough, or $150 if you earn $50,000 annually with $40,000 in debt. On PAYE (Pay As You Earn) or REPAYE (Revised Pay As You Earn), the calculation is similar but the percentages differ slightly.

Key Takeaways

  • Federal loans on the standard 10-year plan typically cost $200 to $300 monthly for balances between $20,000 and $40,000.
  • Income-driven plans can lower your monthly payment to $0 if your income is below the poverty line, or to 5–10% of your discretionary income if you earn more.
  • Private student loans have no standard payment because each lender sets their own terms, interest rates, and repayment schedules.
  • Your actual payment depends on when you borrowed, what interest rate you locked in, and which repayment plan you selected or are currently on.

How the standard 10-year plan calculates your payment

The federal government uses a fixed formula for the standard repayment plan: divide your total loan balance by 120 (the number of months in 10 years), then add interest accrued each month. The result is a payment that stays the same every month until the loan is paid off.

If you borrowed $30,000 at 5% interest, your payment would be roughly $283 per month. If you borrowed $50,000 at the same rate, it would be roughly $472. The interest rate you received depends on the year you borrowed—federal rates have ranged from 2.05% to 8.05% in recent years. Older loans tend to have lower rates; newer loans (2023 onward) have higher rates.

The standard plan is the only federal plan with a truly predictable payment. All other federal plans adjust your payment based on your income, your family size, or how much time has passed since you left school.

Income-driven plans and how they change your payment

Income-driven repayment plans calculate your payment as a percentage of your discretionary income—what's left after the government subtracts 150% of the federal poverty line from your gross income. On SAVE, the newest plan, you pay 5% of discretionary income. On PAYE and REPAYE, you pay 10%. On ICR (Income-Contingent Repayment), you pay either 20% of discretionary income or what you'd pay on a 12-year fixed plan, whichever is lower.

This means your payment changes every year when you recertify your income. If you earned $35,000 last year and have $25,000 in debt, your discretionary income is roughly $20,000 (after subtracting the poverty line). On SAVE, you'd pay 5% of that, or about $83 per month. If you earned $60,000, your discretionary income would be roughly $45,000, and your payment would be about $188 per month on SAVE.

Income-driven plans also offer forgiveness: if you make payments for 20 or 25 years (depending on the plan), any remaining balance is forgiven. SAVE shortens this to 10 years for borrowers with original balances under $12,000. This forgiveness is taxable income in the year it occurs, though Congress has discussed changing that rule.

Private student loan payments vary by lender and your credit

Private loans have no standard payment because each lender—Sallie Mae, Earnin, Discover, and others—sets their own terms. Your payment depends on the loan amount, the interest rate you were offered (which depends on your credit score and co-signer status), and the repayment term you chose (usually 5 to 20 years).

A $25,000 private loan at 7% interest over 10 years costs roughly $290 per month. The same loan at 10% interest costs roughly $325. If you chose a 15-year term instead, the payment drops to roughly $236 at 7% interest, but you pay more total interest over the life of the loan.

Private loans do not have income-driven options or forgiveness programs. Your payment is fixed from the start and does not change unless you refinance with a different lender. Some private lenders offer forbearance (pausing payments temporarily) during hardship, but this is not may provide and varies by lender.

What happens if you pay less than the standard amount

If you're on an income-driven plan and your calculated payment is lower than the interest accruing each month, your loan balance can grow even as you make payments. This is called negative amortization. On SAVE, the government covers the unpaid interest on undergraduate loans, so your balance won't grow. On older plans like PAYE and REPAYE, unpaid interest is added to your principal after you leave the plan or stop making payments.

If you're on a private loan and you pay less than the agreed amount, you're in default. The lender can charge late fees, report the missed payment to credit bureaus, and eventually sue you or garnish your wages. There is no income-driven option to lower a private loan payment; your only recourse is to contact the lender and ask about forbearance or hardship programs, which are discretionary.

How to find out what you actually owe each month

For federal loans, log into StudentAid.gov and view your loan details. You'll see your current balance, interest rate, and repayment plan. If you're on an income-driven plan, your payment is calculated based on your most recent income certification; if you haven't recertified in over a year, your payment may change when you do. You can use the Federal Student Aid Repayment Estimator on StudentAid.gov to see what your payment would be under each plan.

For private loans, log into your lender's website or call the customer service number on your loan documents. Your payment should be listed in your account. If you're struggling to pay, contact the lender directly—do not wait for a missed payment to appear on your credit report.

If you've consolidated federal loans into a Direct Consolidation Loan, your new payment is recalculated based on the combined balance and a weighted average interest rate. Consolidation can lower your monthly payment by extending the repayment term, but you'll pay more interest over time.

Frequently Asked Questions

Can I lower my federal student loan payment if I can't afford it?

Yes. You can switch to an income-driven repayment plan, which bases your payment on your income rather than your loan balance. You must recertify your income every year. If you're experiencing temporary hardship, you can also request forbearance or deferment, which pauses payments for up to three years, though interest usually continues to accrue.

What's the difference between SAVE and PAYE?

SAVE is newer and generally costs less. On SAVE, you pay 5% of discretionary income and the government covers unpaid interest on undergraduate loans. On PAYE, you pay 10% of discretionary income and unpaid interest is added to your balance. SAVE also offers forgiveness after 10 years for borrowers with original balances under $12,000, while PAYE requires 20 years of payments.

Do private student loans have income-driven payment options?

No. Private loans have fixed payments set at the time you borrow. If you can't afford your payment, contact your lender to ask about forbearance or hardship programs, but these are not may provide. Your only other option is to refinance with a different lender, which requires a new credit check.

What happens if I don't pay my student loan?

For federal loans, missed payments are reported to credit bureaus after 90 days and your loan enters default after 270 days. Once in default, the government can garnish your wages, intercept your tax refund, and sue you. For private loans, the consequences are similar but happen faster—some lenders report missed payments after 30 days.

Can I pay more than my monthly payment?

Yes. Extra payments go directly to principal and reduce the total interest you pay over the life of the loan. There are no penalties for paying early on federal or most private loans. Check your loan documents or contact your lender to confirm there's no prepayment penalty.