Income-Driven Repayment (IDR)
Lower your payments. Protect your budget. Stay on track.
If your federal student loan payments feel unmanageable, Income-Driven Repayment (IDR) plans adjust your monthly payment based on what you actually earn — not what you owe.
With IDR, your payments can be as low as $0 per month, and you’ll stay current while working toward loan forgiveness.
💡 What Is IDR?
An Income-Driven Repayment plan sets your monthly student loan payment based on your income and family size, ensuring it stays affordable — even if your income changes.
There are several IDR plans (such as SAVE, PAYE, IBR, and ICR), but they all share the same goal:
Keep your payments manageable and your loans in good standing.
💰 How Your Payment Is Calculated
Your monthly payment is typically:
- A percentage (5%–10%) of your discretionary income — the amount above 225% of the poverty guideline (for SAVE) or 150% for other plans.
- Adjusted annually based on your updated income and family size.
- Never more than what you’d pay under the standard 10-year plan.
You can estimate your payment below using the IDR Calculator.
✅ How to Qualify
To enroll in an IDR plan, you must:
- Have eligible federal student loans (Direct Loans or consolidated FFEL loans).
- Provide your income and family size each year.
- Agree to recertify annually to stay on the plan.
You can switch plans or recalculate at any time if your financial situation changes.
⚙️ How the Process Works
- Estimate your monthly payment with the IDR Calculator.
- Select the best plan for your situation (SAVE, PAYE, IBR, etc.).
- Submit your application through your loan servicer or StudentAid.gov.
- Recertify each year to maintain eligibility.
- Earn forgiveness after 20–25 years of qualifying payments.
📈 Why It Matters
IDR plans help borrowers:
- Avoid default or delinquency
- Reduce financial stress with predictable payments
- Stay eligible for Public Service Loan Forgiveness (PSLF)
- Achieve forgiveness after consistent repayment