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Repayment Plans
The way to save money on your student loans is to enroll in an income-driven repayment plan. These repayment plans base your monthly payment amount on your income and family size, rather than the amount of debt that you owe. This can help make your monthly payments more affordable , which can save you money in the long run .
There are four main income-driven repayment plans available for federal student loans:
Income-Based Repayment (IBR) Plan
Your monthly payments are 10% or 15% of your discretionary income , depending on when you took out your loan . Any remaining balance is forgiven after 20 or 25 years .
Pay As You Earn (PAYE) Plan
Your monthly payments are 10% of your discretionary income . Any remaining balance is forgiven after 20 years .
Revised Pay As You Earn (REPAYE) Plan
Your monthly payments are 10% or 15% of your discretionary income , depending on whether any of your spouse’s income is taken into account . Any remaining balance is forgiven after 20 or 25 years .
Income-Contingent Repayment (ICR) Plan
Your monthly payments are 20% of your discretionary income or what they would be under a fixed 12 - year repayment plan , whichever is less . Any remaining balance is forgiven after 25 years .
If one of these repayment plans sounds like it could work for you , contact your loan servicer and ask about enrolling . Keep in mind that enrolling in an income-driven repayment plan will likely increase the amount of time it takes to repay your debt , as well as the total amount of interest paid over the life of the loan. But it can still be a great way to save money on your student loan payments each month .
The way to save money on your student loans is to enroll in an income-driven repayment plan. These repayment plans base your monthly payment amount on your income and family size, rather than the amount of debt that you owe. This can help make your monthly payments more affordable , which can save you money in the long run .
There are four main income-driven repayment plans available for federal student loans:
Income-Based Repayment (IBR) Plan
Your monthly payments are 10% or 15% of your discretionary income , depending on when you took out your loan . Any remaining balance is forgiven after 20 or 25 years .
Pay As You Earn (PAYE) Plan
Your monthly payments are 10% of your discretionary income . Any remaining balance is forgiven after 20 years .
Revised Pay As You Earn (REPAYE) Plan
Your monthly payments are 10% or 15% of your discretionary income , depending on whether any of your spouse’s income is taken into account . Any remaining balance is forgiven after 20 or 25 years .
Income-Contingent Repayment (ICR) Plan
Your monthly payments are 20% of your discretionary income or what they would be under a fixed 12 - year repayment plan , whichever is less . Any remaining balance is forgiven after 25 years .
If one of these repayment plans sounds like it could work for you , contact your loan servicer and ask about enrolling . Keep in mind that enrolling in an income-driven repayment plan will likely increase the amount of time it takes to repay your debt , as well as the total amount of interest paid over the life of the loan. But it can still be a great way to save money on your student loan payments each month .
