Summary of Income-Driven Repayment Plans
||Available?||Eligibility||Monthly Payment||Discharge After|
|Revised Pay As You Earn (REPAYE)||
Expected in December 2015
|All Direct student loan borrowers.a No partial financial hardship (PFH) requirementb||10% of discretionary incomec||20 years if repaying only undergraduate debt; 25 years if repaying any graduate debt|
|Income-Based Repayment (2014 IBR)||Now
(since July 1, 2014)
|Borrowers who take out their first loan on or after July 1, 2014, and have a PFH.||10% of discretionary income, up to the fixed 10-year payment amount||20 years|
|Pay As You Earn (PAYE)||Now
|Direct student loan borrowersa who took out their first loan after September 30, 2007 and at least one loan after September 30, 2011, and have a PFH||10% of discretionary income, up to the fixed 10-year payment amount||20 years|
|Income-Based Repayment (Original IBR)||Now
|All federal student loan borrowers (Direct or FFEL) with a PFH||15% of discretionary income, up to the fixed 10-year payment amount||25 years|
|Income- Contingent Repayment (ICR)
||All Direct Loan borrowers.d
||The lesser of: 20% of discretionary income and 12- yr repayment amount x income percentage factor||25 years
These plans are only available for federal loans that are not in default. For more information about these repayment plans, see U.S. Department of Education, "Income-Driven Plans," http://StudentAid.gov/idr. To estimate your monthly payments and eligibility for these and other plans, visit the U.S. Department of Education's Repayment Estimator, http://StudentAid.gov/repayment-estimator. To apply for these plans online, go to http://StudentLoans.gov.
a Borrowers may be able to consolidate their FFEL and Perkins loans into a Direct Consolidation Loan to repay them in REPAYE, PAYE, or ICR. Find out more about the pros and cons of consolidation at http://StudentAid.gov/consolidation.
b Borrowers have a “partial financial hardship” (PFH) if their calculated payment based on income and family size is less than what they would pay under the fixed 10-year repayment plan.
c For all of these plans, monthly payments can be as low as $0. For REPAYE, 2014 IBR, PAYE, and Original IBR, discretionary income is defined as the amount of adjusted gross income (AGI) above 150% of the poverty level for the borrower’s household size. For ICR, discretionary income is defined as the amount of AGI above 100% of the poverty level for the borrower’s household size.
d Parent PLUS loans can be repaid in ICR if consolidated into a Direct Consolidation Loan.