Income-Driven Repayment: Complete Guide

Income-driven repayment (IDR) plans cap monthly payments at 5–20% of discretionary income.

The four main plans are SAVE (formerly REPAYE), PAYE, IBR, and ICR.

SAVE is generally the most favorable for new borrowers — it caps payments at 5% of discretionary income for undergraduate loans. After 20–25 years of payments, any remaining balance is forgiven (though the forgiven amount may be taxable). IDR plans are essential for borrowers whose debt exceeds their annual income..