Make the next step clear.

Possibly, if the borrower genuinely qualifies for a tax adjustment. AGI generally starts with total income and subtracts allowable adjustments to income reported on Schedule 1. Never enter a lower AGI just because a deduction might be available; use the filed return or confirm any change with a qualified tax professional.

Common items worth checking include:

• Student loan interest: qualifying interest actually paid may be deductible, subject to eligibility and income limits.
• Traditional IRA contributions: some contributions may be deductible depending on income, filing status, and retirement-plan coverage.
• HSA contributions: eligible contributions may be deductible.
• Self-employment adjustments: potentially the deductible part of self-employment tax, eligible SEP/SIMPLE/qualified retirement-plan contributions, and qualifying self-employed health-insurance premiums.
• Educator expenses and other Schedule 1 adjustments: only if the taxpayer meets the specific requirements.

Do not confuse AGI adjustments with deductions taken later. The standard deduction, itemized deductions, and many tax credits generally do not reduce AGI. Certain deductions reported on Schedule 1-A (such as eligible tips, overtime, vehicle-loan interest, or the enhanced senior deduction) are separate from Schedule 1 adjustments and should not simply be subtracted from AGI.

For federal tax-year rules, start with the IRS Schedule 1 page ↗, Form 1040 instructions ↗, and IRS student loan interest guidance ↗. If current income is materially different from the tax return, check Federal Student Aid's current rules for documenting current income rather than guessing a revised AGI.

It depends on the plan. Under IBR and PAYE, the basic estimate is 10% or 15% of discretionary income, divided by 12, with discretionary income generally based on AGI minus 150% of the applicable poverty guideline. If that amount is zero, the formula can produce a $0 estimate, subject to eligibility and official calculation.

ICR uses the lesser of 20% of discretionary income (using a different poverty allowance) or an income-adjusted 12-year payment. A zero from the first calculation can result in a $0 payment, but the official calculator must assess the second formula and applicable rules. RAP has a $10 minimum, so it does not produce a $0 payment under its standard formula.

Never promise a $0 payment based on income alone. Confirm plan eligibility, income documentation, family size, filing status, and the official calculation.

The date a loan was first disbursed affects which repayment plans may be available. Loans disbursed on or after July 1, 2026 generally enter a new plan structure that includes RAP and Tiered Standard. Legacy plan access depends on the full loan history and exceptions.

For mixed loan dates, don't classify the whole account from one date. Check each loan and consolidation record in StudentAid.gov and use the official Loan Simulator.

An FFEL Consolidation Loan remains part of the older FFEL program. A Direct Consolidation Loan is a federal Direct Loan. Some repayment plans require eligible FFEL loans to be consolidated into a Direct Consolidation Loan, but consolidation is not automatically the best choice.

Before recommending consolidation, review underlying loans, Parent PLUS history, interest, benefits, and qualifying-payment credit. Consolidation can change repayment options and may affect payment history or benefits. Do not promise that prior qualifying payments will all transfer.

Official consolidation guidance ↗

Start with default resolution, not a standard IDR comparison. Confirm the loan holder and default status, then compare the official options, including rehabilitation or eligible consolidation pathways. The routes have different effects on credit history, costs, timing, and repayment access.

Rehabilitation generally involves nine on-time voluntary payments within a 10-month period for Direct/FFEL loans. The loan holder confirms the payment and agreement details. Do not quote an estimated rehabilitation amount as official.

Default options ↗ · Rehabilitation guide ↗

These statuses are not interchangeable. In-school status and grace periods can mean regular repayment has not started. Deferment and forbearance have specific eligibility rules and may affect interest. Confirm the exact status and end date before recommending an application.

Useful support can include organizing account information, tracking status dates, reminders, reviewing options before repayment begins, and helping the borrower understand official notices. Do not claim that an IDR plan can be activated immediately for every status.

Official repayment timing guidance ↗

Both types may be eligible for several of the same repayment plans. The main difference is how interest is handled during certain periods. For eligible Direct Subsidized Loans, the government may cover interest during specific qualifying periods; unsubsidized loans generally accrue interest during those periods. The exact treatment depends on loan type and status.

Loan type matters for interest costs and balance growth, even when it does not change the basic income-driven formula. Review each loan's interest rate, status, and accrued interest.

The basic RAP formula applies an income percentage to annual AGI, divides by 12, then subtracts $50 for each qualifying dependent claimed on the federal tax return. The income percentage ranges from 1% to 10%, and the monthly amount cannot be less than $10. RAP payments are not capped at the 10-year Standard amount.

RAP is not eligible for every loan, including Parent PLUS loans and certain consolidations containing Parent PLUS debt. Check the current official eligibility table before using the estimate.

Federal Student Aid states that PAYE and ICR are scheduled to end no later than July 1, 2028. Availability depends on loan type, disbursement date, and special transition rules. A borrower should consider the planned end date as well as the initial monthly payment.

Official calculator and plan-ending guidance ↗

PSLF is a separate eligibility pathway. It generally requires qualifying employment, eligible Direct Loans, and 120 qualifying monthly payments under applicable rules. A low estimated IDR payment does not by itself establish PSLF eligibility. Confirm employer and payment history using the official PSLF Help Tool.

Official PSLF information ↗

Depending on the service actually purchased, support may include educational explanations, organizing documents, reminders to review deadlines, helping the customer navigate official resources, and tracking follow-up tasks. The customer should always retain control of their StudentAid.gov account and submit applications directly through official channels.

Do not promise guaranteed forgiveness, guaranteed savings, guaranteed $0 payments, or special access to federal programs. Federal Student Aid provides official tools and applications directly.