About Income-Based Repayment

Income-driven repayment plans adjust your monthly federal student loan payment based on your income and family size. Understanding the different plans helps choose the best option for your situation.

Available Plans

IBR Plan

  • Payment is 10-15% of discretionary income
  • 20-25 year forgiveness timeline
  • Must have partial financial hardship
  • Available for all federal loans

PAYE Plan

  • Payment is 10% of discretionary income
  • 20 year forgiveness timeline
  • Must be a new borrower
  • Payment cap at standard amount

Key Benefits

Payment Benefits

  • Lower monthly payments
  • Based on your income
  • Adjusts with family size
  • Annual recertification

Loan Forgiveness

  • Remaining balance forgiven
  • Tax implications possible
  • PSLF compatibility
  • Consistent payments required

Important Considerations

Plan Requirements

Must recertify income annually, report family size changes, and maintain eligible loans to stay in the program.

Financial Impact

Lower payments may mean paying more interest over time. Consider career trajectory and loan forgiveness options.