How To Renew Income Driven Repayment Plan

Download the official income driven repayment plan renewal form here on the federal student aid website or on your servicer s website.

How to renew income driven repayment plan. Income driven repayment plans cap your monthly student loan payments between 10 to 20 percent of your available monthly income with the specific amount depending on the plan and family size. After 20 or 25 years depending on the terms of your loan of qualifying payments your remaining loan balance is eligible for forgiveness. These plans modify your monthly payments based on your income and family size and the amount you pay is determined as a percentage of your discretionary income. So no you don t need to pay anyone to re certify your income for an income driven repayment plan.

Under the paye plan the ibr plan or the icr plan if you don t renew by the annual deadline you ll remain on the same income driven repayment plan however your monthly payment will no longer be based on your income which may substantially increase your monthly payment amount. This plan requires that you have a partial financial hardship as defined on the income driven repayment plan request. However there is a catch if you are enrolled in one of these plans. Here are the step to recertify your idr plan application whether electronically or on paper and what you need to know about the income driven repayment plan renewal process.

The main website where borrowers can visit to apply for and renew income driven repayment plans studentloans gov has been phased out and replaced with studentaid gov a more user friendly. Navient allows you to upload the completed form. If you need to make lower monthly payments or if your outstanding federal student loan debt represents a significant portion of your annual income one of the following income driven plans may be right for you. Use the income driven repayment plan request form.

The four income driven plans used by the department of education include income based repayment ibr pay as you earn paye revised pay as you earn repaye and income contingent repayment icr. Idr plans set monthly payments to a percentage of your discretionary income. Instead your required monthly payment amount will be the. The benefits of re certifying your income and a minor dark side idr plans were introduced to help people regardless of their income level keep up with student loan payments without going into default and incurring large fees.

Income driven repayment idr plans can be helpful financial lifelines if you re struggling to keep up with your student loan payments.