Looking for an affordable student loan repayment plan? You may be eligible for an income-driven repayment plan, also known as an IDR plan. You can sign up for an IDR plan online, or by calling your loan servicer.
If you sign up for an IDR plan, you may qualify for payments as low as $0 per month based on your income. Plus, you can make progress toward having your loans forgiven (canceled) and being student debt-free on an IDR plan, even if your payment is $0 per month.
There are several different IDR plans, but all of them work in the same way: Your monthly payment amount is set each year based on your current income and family size and can go up if you make more money or down if you make less or your family grows. After a certain number of years of making payments, any loan balance you have left is forgiven (canceled). Beginning in 2026, there may be tax consequences for any loan debt that is forgiven through this program. See our page on IDR loan forgiveness for more information.
Click on each IDR plan below to see what may be the best option for you. You can also use the Department of Education’s helpful Loan Simulator Tool to see which of the plans you are eligible for and how much and how long you would likely pay under each plan to decide which is right for you.
Not sure which plan to choose? That’s ok! When you sign up, you can just check a box saying you want to be placed in the IDR plan with the lowest monthly payment, then there is no need to choose
Get one step closer to loan cancellation through the IDR account adjustment!
The Department of Education recently announced a one-time account adjustment to help borrowers get more credit toward IDR and PSLF loan cancellation. While most borrowers will get this credit automatically, some borrowers may have to take steps before April 30, 2024 to receive this credit. Don’t miss out. See our IDR account adjustment page for more information.
SAVE
- Saving on a Valuable Education (SAVE)
- Replaces the REPAYE plan
- Payments will be capped between 5% and 10% of your income (lower payment rate will begin in July 2024).
- Interest that is not covered by your payment will be waived–meaning your loan balance won’t grow!
- All Direct Loans are eligible, except Parent PLUS Loans and Consolidation loans that repaid Parent PLUS Loans
- Cancellation after 20-25 years for all borrowers. And if you only borrowed less than $20,000, you may be able to have your remaining loan balance canceled sooner, in some cases as soon as 10 years!
More About SAVE
REPAYE
- Revised Pay As You Earn (REPAYE)
- Payments capped at 10% of income
- All Direct Loans were eligible, except Parent PLUS Loans and Consolidation loans that repaid Parent PLUS Loans
- Cancellation after 20-25 years
- REPAYE is being replaced by the SAVE plan (you can’t enroll in REPAYE anymore)
- Borrowers already enrolled in REPAYE will automatically be enrolled in the SAVE plan
More About REPAYE
IBR
- Income Based Repayment (REPAYE)
- Payments capped at 10-15% of income
- Most Direct and FFEL Loans are eligible (except Parent PLUS Loans and Consolidation loans that repaid Parent PLUS Loans)
- Cancellation after 20-25 years
More About IBR
PAYE
- Pay As You Earn (PAYE)
- Payments capped at 10% of income
- Only Direct Loans taken out by certain borrowers are eligible, and Parent PLUS loans and Consolidation loans that repaid Parent PLUS Loans are ineligible
- Cancellation after 20 years
More About PAYE
ICR
- Income Contingent Repayment (ICR)
- Payments capped at 20% of income
- All Direct Loans are eligible (Parent PLUS Loans are eligible if they are consolidated into a Direct Consolidation Loan)
- Cancellation after 25 years
More About ICR
SAVE: Saving on a Valuable Education
The SAVE plan is the newest IDR plan, and it will replace the current REPAYE plan. Some of the SAVE Plan benefits are being implemented early in September 2023, but many benefits won’t go into effect until July 1, 2024. If you are already enrolled in the REPAYE plan, you will be automatically transferred to the SAVE plan before July 2024.
Which loans are eligible?
- Direct Subsidized and Unsubsidized Loans,
- Direct Grad PLUS Loans, and
- Direct Consolidation Loans that do not include Parent Plus loans.
Parent Plus Loans or Direct Consolidation Loans that paid off Parent Plus loans are not eligible for SAVE.
How much are payments?
Your monthly payment is based on your income and family size. If you make less than 225 percent of the Federal Poverty Line for your family size, you will have a $0 monthly payment. Until July 1, 2024, if you make more than 225 percent of the federal poverty line, your monthly payments will be 10 percent of the portion of your income above that amount.
After July 1, 2024 if you make more than 225 percent of the federal poverty line, and you only borrowed loans for your undergraduate education, your monthly payment will be 5% of any income above 225 percent of the federal poverty line
If you only borrowed loans for graduate school, your monthly payment will be 10% of your income above 225% of the federal poverty line. If you borrowed for both graduate and undergraduate schools, your monthly payment will be a weighted average of your loans and will be between 5% and 10% of your monthly income above 225 percent of the federal poverty line.
You have to recertify (update) your income and family size each year, even if they haven’t changed. If you’re married, you and your spouse’s income and student loan debt will not be considered together to determine your payment if you file your taxes separately (with limited exceptions).
Your loan balance won’t increase while enrolled in the SAVE plan
One of the biggest benefits of the SAVE Plan is that the Department of Education will stop charging you interest that is not covered by your SAVE plan payment. This means that unlike other IDR plans, you will not see your total loan balance increase while making payments in the plan.
When will my loans be canceled under the SAVE plan?
If you continue to make payments under SAVE, any remaining balance on your loans will be canceled after:
- 10 years of payments if you borrowed $12,000 or less in principal on your loans,
- Less than 20 years of payments if you borrowed less than $21,000 and only borrowed loans for undergraduate education,
- 20 years of payments if all of the loans you’re repaying in the plan were for undergraduate education and you borrowed more than $21,000,
- Less than 25 years of payments if you borrowed any loans for graduate school and you borrowed less than $26,000 in principal,
- 25 years of payments if any of the loans you’re repaying in the plan were for graduate school and you borrowed more than $26,000 in principal.
See the chart below and our blog post on this issue for more information on when you may be eligible for cancellation under the SAVE plan.
Depending on your income and debt, you may pay off your loans sooner. See our blog post for more information on the SAVE plan, including information about who is eligible for a $0 payment!
REPAYE: Revised Pay As You Earn
The REPAYE plan is being replaced by the SAVE plan. The REPAYE plan will be fully replaced by the SAVE plan in July 2024. If you are already enrolled in the REPAYE plan, you do not have to take any steps to enroll in the SAVE plan. You will be automatically transferred to the SAVE plan before July 2024. No one new can enroll in REPAYE now, but you can enroll in the SAVE plan.
Which loans are eligible?
- Direct Subsidized and Unsubsidized Loans,
- Direct Grad PLUS Loans, and
- Direct Consolidation Loans that do not include Parent Plus loans.
Parent Plus Loans or Direct Consolidation Loans that paid off Parent Plus loans are not eligible for REPAYE.
How much are payments?
Your monthly payment is based on your income and family size. Payments are 10 percent of your monthly discretionary income (defined as the difference between your income and 150% of the poverty guideline). You have to recertify (update) your income and family size each year, even if they haven’t changed.
When will my loans be canceled under the REPAYE plan?
If you continue to make payments under REPAYE, any remaining balance on your loans will be canceled after:
- 20 years of payments if all of the loans you’re repaying in the plan were for undergraduate education, or
- 25 years of payments if any of the loans you’re repaying in the plan were for graduate school.
Depending on your income and debt, you may pay off your loans sooner.
PAYE: Pay As You Earn
Which loans are eligible?
The following types of loans are eligible for PAYE if the borrower meets other eligibility requirements:
- Direct Subsidized and Unsubsidized Loans,
- Direct Grad PLUS Loans, and
- Direct Consolidation Loans that do not include Parent Plus loans.
Parent Plus Loans or Direct Consolidation Loans that paid off Parent Plus loans are not eligible for REPAYE.
In addition, you are only eligible for PAYE if your payment in PAYE would be less than your payment in a Standard plan and if you received a Direct Loan on or after October 1, 2011 and you had no outstanding Direct or FFEL loan balance when you received your first federal loan on or after Oct. 1, 2007. Most newer borrowers meet these criteria.
How much are payments?
Your monthly payment is based on your income and family size. Payments are 10 percent of your monthly discretionary income (defined as the difference between your income and 150% of the poverty guideline), but will never be higher than what you would pay under the 10-year Standard repayment plan.
You have to recertify (update) your income and family size each year, even if they haven’t changed. If you’re married, you and your spouse’s income and student loan debt will be considered to determine your payment only if you file your taxes jointly. If you file your taxes separately, only your information is used to determine your payment.
When will my loans be canceled under a PAYE plan?
If you continue to make payments under PAYE, any remaining balance on your loans will be canceled after 20 years of payments. Depending on your income and debt, you may pay off your loans before 20 years.
IBR: Income-Based Repayment
Which loans are eligible?
All Direct and FFEL Loans are eligible for IBR, except for Parent PLUS loans and Direct Consolidation Loans that repaid Parent Plus loans.
In addition, you are only eligible for IBR if your payment in IBR would be less than your payment in a Standard plan
How much are payments?
Your monthly payment is based on your income and family size and depends on when you borrowed:
- Payments are 10 percent of your monthly discretionary income (defined as the difference between your income and 150% of the poverty guideline) if you were a new student loan borrower on or after July 1, 2014.
- If you borrowed before then, payments are generally 15 percent of your monthly discretionary income.
In IBR, just like in PAYE, payments will never be higher than what you would pay under the 10-year Standard repayment plan.
You have to recertify (update) your income and family size each year, even if they haven’t changed. If you’re married, you and your spouse’s income and student loan debt will be considered to determine your payment only if you file your taxes jointly. If you file your taxes separately, only your information is used to determine your payment.
When will my loans be canceled under an IBR plan?
If you continue to make payments under IBR, any remaining balance on your loans will be canceled after:
- 20 years of payments if you were a new student loan borrower on or after July 1, 2014, or
- 25 years if you were a new student loan borrower on or after July 1, 2014.
Depending on your income and debt, you may pay off your loans before you reach 20 to 25 years of payments.
Is this plan right for me?
IBR is generally the only income-driven repayment plan available to borrowers with FFEL loans. But PAYE or REPAYE may be a better option for Direct Loan borrowers. If you have a FFEL loan and want to sign up for an IDR plan, you may want to consider consolidating your FFEL loan into a new Direct Consolidation Loan to qualify for PAYE or REPAYE. See our page on consolidation for more information.
ICR: Income-Contingent Repayment
Which loans are eligible?
- Direct Subsidized and Unsubsidized Loans,
- Direct Grad PLUS Loans, and
- Direct Consolidation Loans, including those that repaid a Parent PLUS loan.
FFEL loans and Parent PLUS loans that have not been consolidated are not eligible for ICR.
ICR is the only IDR plan that is available to borrowers with Parent Plus Loans, but you first have to consolidate your Parent PLUS loan into a new Direct Consolidation Loan to be eligible. For more help, see our page on consolidating loans.
How much are payments?
Your monthly payment is based on your income and family size. Payments are capped at 20 percent of your monthly discretionary income (defined for ICR as income over 100% of the poverty guideline), though may be lower based on a complicated alternative formula.
You have to recertify (update) your income and family size each year, even if they haven’t changed. If you’re married, you and your spouse’s income and student loan debt will be considered to determine your payment only if you file your taxes jointly. If you file your taxes separately, only your information is used to determine your payment.
When will my loans be canceled under an ICR plan?
If you continue to make payments under PAYE, any remaining balance on your loans will be canceled after 25 years of payments. Depending on your income and debt, you may pay off your loans before 25 years.
Is this plan right for me?
ICR is generally the most expensive IDR plan, but it is the only plan available for borrowers with Parent PLUS loans or Direct Consolidation Loans that repaid Parent PLUS loans. ICR is not generally recommended for anyone except for Parent PLUS borrowers.
Need more help choosing an IDR plan?
You can use the Department of Education’s free Loan Simulator Tool to compare repayment plans and decide which plan may be right for you.
My IDR payment seems too high. I think my loan servicer made a mistake. What can I do?
If you disagree with how your loan servicer calculated your IDR payment after you applied, contact your servicer. It’s possible they made a mistake. You may also be able to switch plans to get a lower monthly payment amount if there wasn’t a mistake. If you still think the payment amount is wrong, you can file a complaint with the Federal Student Aid Ombudsman.
