IBR vs PAYE vs SAVE: Income-Driven Repayment Plan Comparison (2026)
Quick Answer
SAVE (Saving on a Valuable Education) generally offers the lowest payments among current IDR plans — for undergraduate borrowers, payments are capped at 5% of discretionary income (vs 10% for IBR). PAYE capped payments at 10% but is no longer open to new enrollees. IBR remains available with a 10% (new borrowers after 2014) or 15% (older borrowers) payment cap. SAVE also prevents interest from accruing beyond your monthly payment amount.Income-Driven Repayment (IDR) plans tie your federal student loan payment to your income and family size. There are currently three main active plans: IBR (Income-Based Repayment), the legacy PAYE (Pay As You Earn — closed to new enrollees), and SAVE (Saving on a Valuable Education — the Biden-era replacement for REPAYE). SAVE has the lowest payments for most undergraduate borrowers but has been subject to ongoing legal challenges in 2025–2026. All IDR plans offer forgiveness after 20–25 years of qualifying payments. The IDR plan that minimizes lifetime payments depends on your income trajectory, loan balance, and whether you pursue PSLF.
IBR vs SAVE: Side-by-Side
| Feature | IBR | SAVE |
|---|---|---|
| Payment cap (undergrad) | 10% discretionary income (new) / 15% (old) | 5% discretionary income |
| Payment cap (grad loans) | 10% or 15% | 10% |
| Discretionary income definition | Income above 150% of federal poverty line | Income above 225% of federal poverty line |
| Forgiveness timeline | 20 years (undergrad new) / 25 years (old) | 20 years (undergrad <$12K original balance) / 25 years |
| Interest subsidy | None (interest can capitalize) | Yes — unpaid interest covered if payment is lower |
| Available to new borrowers | Yes | Yes (legal status subject to change) |
| PSLF eligible | Yes | Yes |
| Best for | Stable income; clarity on rules; PSLF track | Low-income borrowers; highest payment reduction |
Payment cap (undergrad)
IBR
10% discretionary income (new) / 15% (old)
SAVE
5% discretionary income
Payment cap (grad loans)
IBR
10% or 15%
SAVE
10%
Discretionary income definition
IBR
Income above 150% of federal poverty line
SAVE
Income above 225% of federal poverty line
Forgiveness timeline
IBR
20 years (undergrad new) / 25 years (old)
SAVE
20 years (undergrad <$12K original balance) / 25 years
Interest subsidy
IBR
None (interest can capitalize)
SAVE
Yes — unpaid interest covered if payment is lower
Available to new borrowers
IBR
Yes
SAVE
Yes (legal status subject to change)
PSLF eligible
IBR
Yes
SAVE
Yes
Best for
IBR
Stable income; clarity on rules; PSLF track
SAVE
Low-income borrowers; highest payment reduction
Which Should You Choose?
SAVE offers the lowest payments for most borrowers in 2026, especially those with primarily undergraduate debt — the 5% cap and higher income exclusion are significant. However, SAVE has faced court challenges and its long-term availability is uncertain. IBR is the most legally stable IDR plan with a long track record. For Public Service Loan Forgiveness (PSLF) borrowers aiming for 10-year forgiveness, any qualifying IDR plan works — the key is staying enrolled and making on-time payments. If forgiveness after 20+ years is your goal, SAVE's interest subsidy could save tens of thousands.