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Income-Driven Repayment Plans

Income-driven repayment plans are a great option if your monthly payment feels high in relation to your income. There are four income-driven repayment plans available, all of which come with different options based on your needs.

Revised Pay As You Earn Repayment

This plan is for Direct Loans only, and includes a regular monthly payment amount based on your adjusted gross income, family size, and total eligible federal student loan balance. Your regular monthly payment amount will generally be 10 percent of your discretionary income. This plan allows you to qualify for loan forgiveness if you meet the following criteria:

  • Make qualifying payments for 20 years for undergraduate-level only borrowers or 25 years for graduate-level borrowers
  • Have only undergraduate-level federal student loans
  • Or for 25 years if you have at least one eligible graduate-level federal student loan

Please know that some student loans are not eligible for this plan, including Federal Family Education Loan Program (FFELP) Loans, as well as Federal Direct Parent PLUS and Federal Direct Consolidation Loans containing at least one Federal Parent PLUS Loan. Eligible student loans can be placed on the REPAYE Plan after they are in a repayment status.

Pay As You Earn Repayment

This plan is for Direct Loans only, and your payments are based on your adjusted gross income, family size, and total federal student loan balance. Your regular monthly payment amount will generally be 10 percent of your discretionary income. You'll need to meet the following criteria to be eligible:

  • Your loans are eligible for forgiveness on this plan after 20 years of qualifying payments.
  • In order to be eligible for this plan, you'll need at least one eligible Direct Loan that had a disbursement on or after October 1, 2011.
  • If you had any student loans disbursed prior to October 1, 2007, that had an active balance as of October 1, 2007, you are not eligible for this plan.

Income-Based Repayment

This repayment plan is for both FFELP and Direct Loans. Your payment amount is based on your adjusted gross income, family size, and total indebtedness. Your regular monthly payment amount will generally be 10 or 15 percent of your discretionary income (depending on your loans' disbursement dates). After 20 or 25 years (depending on the terms of your loans) of qualifying payments, your remaining loan balance is eligible for forgiveness. Parent PLUS loans and consolidation loans (which include at least one parent PLUS loan) do not qualify for this plan.

Income-Contingent Repayment

This plan is for Direct Loans only, and your payments are based on your adjusted gross income, family size, and total Direct Loan balance (excluding parent PLUS loans). Your remaining loan balance is eligible for forgiveness after 25 years of qualifying payments. Parent PLUS loans and consolidation loans containing parent PLUS loans that entered repayment before 2006 do not qualify.

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