Discretionary Income Calculator
Calculate discretionary income for student loan repayment plans using federal poverty guidelines
Calculate Discretionary Income
Total household income before deductions
Tax filing status affects family size calculation
Poverty guidelines vary by state
Children and other dependents claimed on taxes
ICR uses 100% poverty line, others use 150%
Discretionary Income Analysis
Income Breakdown
Family Details
Formula: Discretionary Income = Annual Income - (150% × Federal Poverty Guideline)
Calculation: $0 - $22,590 = $0
Percentage of Income: 0.0% of your income is discretionary
Student Loan Payment Estimates
Example Calculations
Example 1: Magda (Texas)
Situation: Married couple, both earn $40,000
Total Income: $80,000
Family Size: 2 members
Poverty Line: $20,440
150% Threshold: $30,660
Discretionary Income: $49,340
Example 2: Jack (Hawaii)
Situation: Married with 3 children
Income: $90,000 (spouse no income)
Family Size: 5 members
Poverty Line: $45,730 (Hawaii)
150% Threshold: $68,595
Discretionary Income: $21,405
Income-Driven Repayment Plans
PAYE
10% of discretionary income
20-year forgiveness
REPAYE
10% of discretionary income
20/25-year forgiveness
IBR
10-15% of discretionary income
20/25-year forgiveness
ICR
20% of discretionary income
25-year forgiveness
Key Facts
Discretionary income = Income - 150% poverty line
ICR plan uses 100% poverty line instead
Alaska and Hawaii have higher poverty guidelines
Family size includes spouse and dependents
Used for federal student loan payments
Understanding Discretionary Income
What is Discretionary Income?
Discretionary income is the amount of money left over after paying for essential living expenses. For federal student loans, it's specifically calculated as your annual income minus 150% of the federal poverty guideline for your family size and state.
Why is it Important?
- •Determines monthly payments for income-driven repayment plans
- •Helps borrowers manage student loan debt affordably
- •Required for PAYE, REPAYE, IBR, and ICR plans
- •Recalculated annually based on tax returns
Calculation Method
Discretionary Income = Annual Income - (Multiplier × Poverty Guideline)
- Annual Income: Adjusted Gross Income from tax return
- Multiplier: 150% for most plans, 100% for ICR
- Poverty Guideline: Federal guidelines by family size and state
- Family Size: Borrower + spouse + dependents
Note: If the calculation results in a negative number, your discretionary income is $0, and your payment may be $0.
2024 Federal Poverty Guidelines
48 States + DC
1 person: $15,060
2 people: $20,440
3 people: $25,820
4 people: $31,200
Each additional: +$5,380
Alaska
1 person: $18,810
2 people: $25,530
3 people: $32,250
4 people: $38,970
Each additional: +$6,720
Hawaii
1 person: $17,310
2 people: $23,490
3 people: $29,670
4 people: $35,850
Each additional: +$6,180