![]() If you’re not a new borrower after that period, your repayment term is 25 years. New borrowers after July 1, 2014, have a repayment term of 20 years. If you’re not a new borrower after that time, you’ll pay 15% of your income. It has two versions of the plan depending on when you borrowed money.įor example, if you’re a new borrower from July 1, 2014, and after, you’ll pay 10% of your income. Saving on a Valuable Education (the SAVE plan, formerly REPAYE)Īll of these plans differ in the amount you’d owe each month as well as eligibility requirements.Which plans fall under income-driven repayment? IDR plans are only available to federal student loan borrowers. If those payments are too high, an income-driven repayment plan lowers your monthly payments, based on your family size and your income. This plan has a repayment term of 10 years and the monthly payments are set accordingly. Under this category, your repayment is a monthly payment that’s more manageable and affordable - ideally, less than what your monthly payment is on the 10-year Standard Repayment Plan.Ī Standard Repayment Plan is the default plan that’s set when you start paying back your loan. Income-driven repayment (IDR) refers to the four student loan repayment options that are based on a percentage of your income (which we’ll get into below). It sounds pretty close to “IBR” which is the income-based repayment plan but the term income-driven repayment (IDR) is the category of repayment plans that are based on your income. ![]() When people hear the term “IDR” it can often be misconstrued as a repayment plan. One term you may have come across is “income-driven repayment.” In this guide, we’ll share everything you need to know about what it is, what it’s not, and how it can work for you. ![]() ![]() The downside? There are a lot of plans to choose from and it can be tough to know which is best for you. The good thing about having federal student loans is that you have various repayment options. ![]()
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