Discretionary income is your AGI minus a multiple of the federal poverty guideline for your household, and the multiple depends on the plan. IBR and PAYE protect 150% of the guideline, ICR protects 100%, and RAP does not use it at all.
All figures on this page computed on September 4, 2026 with the Finology Software engine (engine date 2026-09-04, rules ledger rl1-e9e3bcda3054f95c). Each constant is cited to its primary source below. Estimates for planning only, not advice.
What is my discretionary income?
The table below moves income and household size across the 2026 guidelines. The protected amount is what the plan shelters; the discretionary figure is what the payment formula is applied to.
| Annual income (AGI) | Household size | IBR protected (150%) | IBR discretionary | ICR protected (100%) | ICR discretionary |
|---|---|---|---|---|---|
| $30,000 | 1 | $23,940 | $6,060 | $15,960 | $14,040 |
| $30,000 | 2 | $32,460 | $0 | $21,640 | $8,360 |
| $30,000 | 4 | $49,500 | $0 | $33,000 | $0 |
| $45,000 | 1 | $23,940 | $21,060 | $15,960 | $29,040 |
| $45,000 | 2 | $32,460 | $12,540 | $21,640 | $23,360 |
| $45,000 | 4 | $49,500 | $0 | $33,000 | $12,000 |
| $60,000 | 1 | $23,940 | $36,060 | $15,960 | $44,040 |
| $60,000 | 2 | $32,460 | $27,540 | $21,640 | $38,360 |
| $60,000 | 4 | $49,500 | $10,500 | $33,000 | $27,000 |
| $80,000 | 1 | $23,940 | $56,060 | $15,960 | $64,040 |
| $80,000 | 2 | $32,460 | $47,540 | $21,640 | $58,360 |
| $80,000 | 4 | $49,500 | $30,500 | $33,000 | $47,000 |
| $100,000 | 1 | $23,940 | $76,060 | $15,960 | $84,040 |
| $100,000 | 2 | $32,460 | $67,540 | $21,640 | $78,360 |
| $100,000 | 4 | $49,500 | $50,500 | $33,000 | $67,000 |
Why is the ICR figure larger than the IBR figure?
Because ICR shelters less. It protects 100% of the poverty guideline against 150% under IBR and PAYE, so more of the same income is left exposed. At $60,000 of income in a one person household that is $44,040 of discretionary income under ICR against $36,060 under IBR.
Does RAP use discretionary income?
No, and this is the part most explanations get wrong. RAP does not use discretionary income. It assesses a tiered percentage of full AGI from the first dollar, so no poverty guideline is subtracted. So a borrower comparing RAP to IBR cannot reason from a single discretionary income figure. The RAP vs IBR calculator compares the two on payment and lifetime cost instead.
Run your own numbers
The calculator below uses the same engine and the same cited constants as the table above.
Frequently asked questions about discretionary income
What is discretionary income for student loans?
It is your adjusted gross income minus a multiple of the federal poverty guideline for your household size. The income driven plans then charge a percentage of that remainder rather than of your whole income. At $60,000 of income in a one person household, IBR treats $36,060 as discretionary.
How much of the poverty guideline does each plan protect?
IBR and PAYE protect 150% of the guideline. ICR protects 100%, so ICR shelters less income and its discretionary figure is larger. At $60,000 of income in a one person household that is $23,940 protected under IBR against $15,960 under ICR.
Does RAP use discretionary income?
No. RAP does not use discretionary income. It assesses a tiered percentage of full AGI from the first dollar, so no poverty guideline is subtracted. That is the single most common misconception about the plan, and it is why a RAP payment can be higher than an IBR payment at the same income.
Does household size change my discretionary income?
Substantially. At $60,000 of income, a one person household has $36,060 of IBR discretionary income and a four person household has $10,500, because the protected amount rises with each additional person.
Can my discretionary income be zero?
Yes. If your income is at or below the protected amount, discretionary income is zero and the income driven payment calculation starts from nothing. At $30,000 of income in a one person household, IBR discretionary income is already down to $6,060.
Do Alaska and Hawaii use different numbers?
Yes. Both have their own higher poverty guidelines, so the protected amount is larger and discretionary income is smaller at the same income. The table on this page uses the 48 contiguous states and DC.
Where these numbers come from
Every figure on this page is computed by the same engine that serves advisors inside Finology Software, and each constant below is carried with its authority and the date we last checked it against that authority. Discretionary income is a derived figure rather than a whole plan projection, so it is cited to source rather than parity verified.
- 2026 Federal Poverty Line (48 states + DC), HHS Annual Federal Poverty Guidelines. Effective 2026-01-01, last verified 2026-06-13. Primary source.
- 2026 Federal Poverty Line (Alaska), HHS Annual Federal Poverty Guidelines. Effective 2026-01-01, last verified 2026-06-13. Primary source.
- 2026 Federal Poverty Line (Hawaii), HHS Annual Federal Poverty Guidelines. Effective 2026-01-01, last verified 2026-06-13. Primary source.
- RAP applies a poverty offset, One Big Beautiful Bill Act, § 2 (Repayment & Borrowing Mechanics). Effective 2026-07-01, last verified 2026-07-09.