Income Driven Repayment Plan Percentage

Income driven repayment plans base the loan payments on a percentage of the borrower s discretionary income as opposed to the amount owed.

Income driven repayment plan percentage. Income driven repayment or idr plans are designed to make student loan repayment more affordable by limiting monthly payments to a certain percentage of a borrower s income. This plan caps payments at 10 percent of your discretionary income if you received your loan before july 1 2014 with forgiveness after 20 years. The final option for income driven repayment plans is the income contingent repayment plan. The four types of income driven repayment options.

You ll be allowed to pay the lesser of these two options. To qualify for student loan forgiveness you must make on time payments for 20 to 25 years and then you can receive student loan forgiveness on any remaining balance.