Income-Driven Repayment

Income-driven repayment plans cap your monthly federal loan payment at a percentage of your discretionary income, with forgiveness of any remaining balance after 20 or 25 years. They are best for borrowers whose standard monthly payment is unaffordable relative to their current earnings. Compare the SAVE, PAYE, IBR, and ICR plans to find the lowest payment, and remember to recertify your income annually to maintain eligibility.