Student Loan Repayment Calculator and Discharge Options
Author: Ian C. Langtree - Writer/Editor for Disabled World (DW)
Published: 2011/10/27 - Updated: 2026/01/18
Publication Type: Conversion, Calculation
Category Topic: Education - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This resource provides a practical calculator and income-based repayment chart for federal student loans, along with detailed guidance on deferment, forbearance, consolidation, and discharge options available to borrowers. The information proves particularly valuable for people with disabilities who may qualify for total and permanent disability discharge, as well as students facing financial hardship who need to understand their payment options and rights. By presenting federal loan types, grace periods, teacher loan forgiveness programs, and school-related discharge scenarios in clear terms, the calculator and accompanying reference material help borrowers make informed decisions about managing their educational debt obligations - Disabled World (DW).
Introduction
This article contains information on cancellation, consolidation, deferment, and discharge of U.S. student loans.
NOTE: If you wish to calculate your student loan repayments see our calculator and income based repayment chart at the bottom of the article.
Main Content
Types of Student Loans
In the United States, there are three types of student loans:
Two of them are federally subsidized and unsubsidized sponsored by the federal government and the other type is private student loans.
The unsubsidized program allows students to borrow money with interest accruing during school and subsidized loans allow them to defer interest accrual until they are no longer in school. Student loans may be offered as part of a total financial aid package that may also include grants, scholarships, and/or work study opportunities.
A student loan has some major differences over conventional loans:
- Interest rates higher than most home loans and inability to negotiate. The interest rate on a student loan will generally be at least two percentage points lower than the going market rate for conventional loans, but this will vary.
- Repayment typically begins anywhere from 6 to 12 months after a student leaves school, regardless of whether or not they complete their degree program. In some cases, repayment begins if course load drops to half time or less, so it is important to check the exact terms and conditions of any student loan.
- The student may have multiple options for extending the repayment period, although an extension of the loan term will likely reduce the monthly payment, it will also increase the amount of total interest paid on the principle balance during the life of the loan. Extension options include extended payment periods offered by the original lender and federal loan consolidation. There are also other extension options including income sensitive repayment plans and hardship deferments. Extensions and consolidation will also add to the principle, many times the unpaid interest and penalties becomes capitalized.
What is a Master Promissory Note?
The Master Promissory Note is an agreement between the lender and the borrower that promises to repay the loan. It is a binding legal contract. Direct student loans can be obtained by filling out the government FAFSA form, and each school will determine eligibility of a student for direct federal loans. In general, you must repay your loan even if you don't graduate, can't find work in your field of study, or are dissatisfied with the education program. However there are some exceptions.
Student Loan Borrower Grace Periods
After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be:
- 1. Nine months for Federal Perkins Loans.
- 2. Six months for a Federal Stafford Loan (Direct Loan Program or Federal Family Education Loan (FFELSM) Program).
Student Loan Deferment and Forbearance
A deferment is a postponement of payment on a loan, during which interest does not accrue if the loan is subsidized. You may qualify for a deferment while you are:
- Unemployed or meet the rules for economic hardship (limited to 3 years).
- Enrolled at least half time in an eligible postsecondary school or studying full time in a graduate fellowship program or an approved disability rehabilitation program.
- You may also be eligible for a deferment based on qualifying active duty service in the U.S. Armed Forces or National Guard. Refer to the MPN for your loan or contact the Direct Loan Servicing Center for more information about specific qualifications for deferment based on military service.
Loan Discharge Due to Disability, Bankruptcy, or Death
- Your loan may be canceled if it is discharged in bankruptcy - (Discharging Student Loans and Bankruptcy)
- Your loan may be discharged if you are determined to be totally and permanently disabled and you meet certain requirements during a 3-year conditional discharge period.
- For a student who dies, the loan will be canceled if a family member or other representative provides an original or a copy of the original or certified copy of the death certificate to the Direct Loan Servicing Center.
Under certain circumstances you may be able to cancel your student loan obligations, defer payments, or negotiate a more suitable payment plan - Debt Relief - Finding Legitimate Alternatives to Student Loan Consolidation.
Student Loan Cancellation
Teacher service - If you are a new borrower (You are considered a new borrower if you did not have an outstanding balance on an FFEL or Direct Loan on Oct. 1, 1998, or on the date you obtained an FFEL or Direct Loan after Oct. 1, 1998) and are a full-time teacher in a low-income elementary or secondary school for 5 consecutive years, you may be able to have as much as $17,500 of your subsidized or unsubsidized loans canceled. This provision is not available for borrowers of PLUS Loans.
If you are employed in certain public service jobs and have made 120 payments on your Direct Loans (after Oct. 1, 2007), the remaining balance that you owe may be forgiven.
School Related Discharges
In certain cases, you may be able to have all or a part of your loan canceled due to:
- Your school closed before you completed your program.
- Your loan was falsely certified because of identity theft (additional requirements apply).
- Your school forged your signature on your promissory note or falsely certified that you were eligible to get the loan.
- You withdrew from school but the school didn't pay a refund that it owed under its written policy or our regulations. Check with the school to see how refund policies apply to federal aid at the school.
Student Loan Consolidation
There may be advantages to consolidating (combining) your federal student loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period of time.
The Direct Loans Consolidation website has a loan consolidation calculator you can use to find out how much you'll pay each month if you consolidate.
Student Loan Calculator and Repayment Schedule
NOTE: This calculator is to be considered as a guide to student loan re-payments and the results of this student loan payment calculator are for comparison purposes only. Please consult your lending institution or financial adviser before making any decisions.
| Annual Income | Family Size | ||||||
|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
| 10,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 15,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 20,000 | 46 | 0 | 0 | 0 | 0 | 0 | 0 |
| 25,000 | 108 | 37 | 0 | 0 | 0 | 0 | 0 |
| 30,000 | 171 | 99 | 28 | 0 | 0 | 0 | 0 |
| 35,000 | 233 | 162 | 90 | 18 | 0 | 0 | 0 |
| 40,000 | 296 | 224 | 153 | 81 | 9 | 0 | 0 |
| 45,000 | 358 | 287 | 215 | 143 | 72 | 0 | 0 |
| 50,000 | 421 | 349 | 278 | 206 | 134 | 63 | 0 |
| 55,000 | 483 | 412 | 340 | 268 | 197 | 125 | 54 |
| 60,000 | 546 | 474 | 403 | 331 | 259 | 188 | 116 |
| 65,000 | 608 | 537 | 465 | 393 | 322 | 250 | 179 |
| 70,000 | 671 | 599 | 528 | 456 | 384 | 313 | 241 |
The chart above shows the maximum IBR monthly payment amounts for a sample range of incomes and family sizes using the Poverty Guidelines that were in effect as of January 20, 2011 for the 48 contiguous states and the District of Columbia.
(i) - Calculations are estimates and values may not reflect the actual amount computed by the loan servicing center.
Insights, Analysis, and Developments
Editorial Note: Understanding the full range of student loan repayment and discharge options can mean the difference between decades of financial struggle and a manageable path forward. While the calculator provides estimates for standard repayment scenarios, borrowers should recognize that federal programs offer significant flexibility for those facing unemployment, economic hardship, or permanent disability. The income-based repayment structure ensures that monthly obligations remain proportional to actual earning capacity rather than fixed amounts that ignore financial realities. Given the complexity of consolidation trade-offs and the specific documentation requirements for disability discharge, consulting with loan servicers directly remains essential before making major decisions about repayment strategy or pursuing discharge applications - Disabled World (DW).
Author Credentials: Ian is the founder and Editor-in-Chief of Disabled World, a leading resource for news and information on disability issues. With a global perspective shaped by years of travel and lived experience, Ian is a committed proponent of the Social Model of Disability-a transformative framework developed by disabled activists in the 1970s that emphasizes dismantling societal barriers rather than focusing solely on individual impairments. His work reflects a deep commitment to disability rights, accessibility, and social inclusion. To learn more about Ian's background, expertise, and accomplishments, visit his full biography.