Income-Driven Repayment (IDR) Plans: Who Qualifies and What You Get
Learn how Income-Driven Repayment plans work to help federal student loan borrowers manage monthly payments based on their income.
Income-Driven Repayment (IDR) plans are federal programs designed to make federal student loan payments more manageable by linking your monthly amount to your earnings.
Who it's for
This is for borrowers who have federal student loans that meet the specific eligibility requirements set by the government.
What you get
Instead of paying a fixed amount based on your total debt, your monthly payment is calculated based on your discretionary income. This is the amount of money you have left over after accounting for essential living expenses.
What it costs you
While the monthly payments are adjusted to your income, you must undergo an annual recertification process. This means you will need to provide updated information about your income and family size every year to keep your plan active.
The catch to know
Even if your monthly payment is low, it might not cover the full amount of interest that accumulates each month. If your payment is less than the interest due, that unpaid interest can grow and be added to your total loan balance, increasing the amount you eventually owe.
How to apply
- Visit the official student aid website.
- Log in to your account to view your specific loan details.
- Use the online tools to compare different repayment options.
- Submit your application and required income documentation through the portal.
https://studentaid.gov/manage-loans/repayment/plans/income-driven