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Income-Driven Repayment Plans for 2025
Income-driven repayment (IDR) plans cap federal student loan payments as a percentage of discretionary income, offering relief for borrowers whose income doesn't support standard repayment amounts.
Available IDR Plans
| Plan | Payment Cap | Forgiveness Timeline |
|---|---|---|
| SAVE (Saving on a Valuable Education) | 5-10% of discretionary income | 20-25 years |
| PAYE | 10% of discretionary income | 20 years |
| IBR | 10-15% of discretionary income | 20-25 years |
How to Apply
Apply directly through the Federal Student Aid website (studentaid.gov) — you'll need to provide income documentation, and your payment amount is recalculated annually based on updated income.
Recertify Every Year
Missing your annual income recertification can result in reverting to standard repayment amounts and potentially accrued interest — mark your recertification date and complete it on time.
Common Mistakes
Not recertifying income annually, causing an unexpected jump in payment amount — set a reminder well before your recertification deadline to avoid this.
Frequently Asked Questions
Apply directly through the Federal Student Aid website (studentaid.gov), providing income documentation — the process is free and doesn't require a third-party service.
Your payment recalculates based on updated income during annual recertification, though you can also request recertification earlier if your income changes significantly.