Income Driven Repayment Plan How Long

An income driven repayment idr plan is a type of federal plan to pay off your student loans that s based on your income.

Income driven repayment plan how long. 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. While an income driven repayment plan saves money in the short term it can be more expensive in the long run. Depending on which you choose you ll pay anywhere between 10 to 20 of your monthly discretionary income based on annual updates. However an income driven repayment plan does not lower your interest rate.

If you ve taken out loans before july 1 2014 you can expect your payment to be 15 percent or less of your. With the other income driven repayment plans you can qualify for loan forgiveness after just 20 years of payments except if you choose repaye and have loans from graduate school which extends.