Income-Driven Repayment Plans.
Learn the perks and if you can lower your student loan payment.
Get some flexibility with your student loans.
It’s no secret that student loan debt is a growing issue. To give student loan borrowers more affordable options, the government has created a plan called income-driven repayment. The income-driven repayment plan has four different types of programs within it: IBR, REPAYE, PAYE and ICR. These four plans will set your monthly student loan payment between 10%-20% of your discretionary income.
The standard student loan repayment lasts 10 years, but with an income-driven repayment plan you will end up having your loan term stretched out to 20 or 25 years depending on which plan you select. It’s important to note that to be eligible for an income-driven repayment plan, you can only have federal student loans, no private loans are allowed under this plan. So, if you already borrowed money from a private student loan lender, you’ll be out of luck if you’re looking to apply for any of the four income-driven repayment options.
If you’re struggling to make your student loan payments every month, these payment plan options are worth a look.
Income-Driven Repayment Plans.
There's only 4, so let's learn them.
Income-Driven Repayment simplified.
Geek out on the facts and choose the best plan.
IBR
Income-Based Repayment
PAYE
Pay As You Earn Repayment
REPAYE
Revised Pay As You Earn Repayment
ICR
Income-Contingent Repayment
What is it?
An income-driven repayment plan that helps you lower your monthly student loan payment by using your discretionary income.
An income-driven repayment plan that helps you lower your monthly student loan payment by using your discretionary income.
An income-driven repayment plan that helps you lower your monthly student loan payment by using your discretionary income.
An income-driven repayment plan that helps you lower your monthly student loan payment by using your discretionary income.
What is your monthly payment?
Generally 10% of your discretionary income if you're a new borrower on or after July 1, 2014 and never more than the 10 year Standard Repayment amount.
Generally 15% of your discretionary income if you're not a new borrower on or after July 1, 2014, but never more than the 10 year Standard Repayment amount.
Generally 10% of your discretionary income, but never more than the 10 year Standard Repayment Plan amount.
Generally 10% of your discretionary income.
Whichever is less:
1) 20% of your discretionary income
2) What you'd pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income.
How long until you receive forgiveness on your student loans under this plan?
20 years if you're a new borrower on OR after July 1, 2014
25 years if you're NOT a new borrower on or after July 1, 2014
20 Years
20 Years for Undergraduates
25 Years for Graduate or Professional
25 Years
Will my monthly payment stay the same throughout this plan?
No. Under this plan you will have to "recertify" your income and family size with your loan servicer every year. So your monthly payment can change yearly depending on your income and family size. It will never be more than what you would pay under the 10-year Standard Repayment Plan
No. Under this plan you will have to "recertify" your income and family size with your loan servicer every year. So your monthly payment can change yearly depending on your income and family size. It will never be more than what you would pay under the 10-year Standard Repayment Plan
No. Under this plan you will have to "recertify" your income and family size with your loan servicer every year. So your monthly payment can change yearly depending on your income and family size. Keep in mind there is no cap so your monthly payment can be higher than what you'd pay under the 10-year Standard Repayment Plan if your income increases.
No. Under this plan you will have to "recertify" your income and family size with your loan servicer every year. So your monthly payment can change yearly depending on your income and family size. Keep in mind there is no cap so your monthly payment can be higher than what you'd pay under the 10-year Standard Repayment Plan if your income increases.
What's eligibility like?
Your monthly student loan payment under the IBR plan can’t equal or exceed what your payments would be under the 10-year Standard Repayment Plan.
You have to be a new borrower as of October 1, 2007. You are not eligible if you had an outstanding balance on a Direct Loan before October 1, 2007.
You must have received a Direct Loan disbursement on or after October 1, 2011.
Your loans must qualify for a IBR plan. Qualifying loans include Direct Subsidized and Unsubsidized Loans, Graduate PLUS Loans and consolidation loans made after October 1, 2011, as long as the consolidation loans do not include Direct or FFEL Loans made before October 1, 2007.
Your monthly student loan payment under the PAYE plan can’t equal or exceed what your payments would be under the 10-year Standard Repayment Plan.
You have to be a new borrower as of October 1, 2007. You are not eligible if you had an outstanding balance on a Direct Loan before October 1, 2007.
You must have received a Direct Loan disbursement on or after October 1, 2011.
Your loans must qualify for a PAYE plan. Qualifying loans include Direct Subsidized and Unsubsidized Loans, Graduate PLUS Loans and consolidation loans made after October 1, 2011, as long as the consolidation loans do not include Direct or FFEL Loans made before October 1, 2007.
It depends on your type of student loan, see our graph below to see if your student loan qualifies.
It depends on your type of student loan, see our graph below to see if your student loan qualifies.
Are Parent PLUS Loans eligible under this plan?
No
No
No
Yes
We get it, there’s a lot to income-driven repayment plans, and not everyone will qualify. Another wise way to trim your student loan payment is by refinancing your student loans with a private lender. Browse the best lenders with DollarGeek and find out your wisest option – always for free.
Do your student loans qualify for your plan?
Browse the different types of student loans and their eligibility.
IBR
Income-Based Repayment
PAYE
Pay As You Earn Repayment
REPAYE
Revised Pay As You Earn Repayment
ICR
Income-Contingent Repayment
Loan Type
Direct Subsidized Loans
Direct Unsubsidized Loans
Direct PLUS Loans made to Graduate & Professional students
Direct PLUS Loans made to parents
Yep, if it's consolidated.
Direct Consolidation Loans that did not repay any PLUS loans made to parents
Direct Consolidation Loans that repaid PLUS loans made to parents
Subsidized Federal Stafford Loans (from the FFEL Program)
Yep, if it's consolidated.
Yep, if it's consolidated.
Yep, if it's consolidated.
Unsubsidized Federal Stafford Loans (from the FFEL Program)
Yep, if it's consolidated.
Yep, if it's consolidated.
Yep, if it's consolidated.
FFEL PLUS Loans made to graduate or professional students
Yep, if it's consolidated.
Yep, if it's consolidated.
Yep, if it's consolidated.
FFEL PLUS Loans made to parents
Yep, if it's consolidated.
FFEL Consolidation Loans that did not repay any PLUS loans made to parents
Yep, if it's consolidated.
Yep, if it's consolidated.
Yep, if it's consolidated.
FFEL Consolidation Loans that repaid PLUS loans made to parents
Yep, if it's consolidated.
Federal Perkins Loans
Yep, if it's consolidated.
Yep, if it's consolidated.
Yep, if it's consolidated.
Yep, if it's consolidated.
Financial clarity is priceless. Check out our student loan calculators, we have a variety that can help you get a better understanding of where you’re at, and how you can start keeping more cash in your pocket.
Each IDR plan offers a unique repayment.
Understand your options.
Income-Driven Repayment (IDR)
Fun Fact: There are only 4 Income-Driven Repayment plans. Check out the basics below.
Plan
Monthly Payment
Length
Calculator
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