Income-Driven Plan Eligibility

INCOME-DRIVEN PLAN ELIGIBILITY REQUIREMENTS AND GENERAL INFORMATION

(From Section 10 of the Income-Driven Repayment Plan Request)

Plan Feature SAVE (Formerly REPAYE) PAYE IBR IBR for New Borrowers ICR
Payment Amount Generally, 10% of discretionary income. Generally, 10% of discretionary income. Generally, 15% of discretionary income. Generally, 10% of discretionary income. Lesser of 20% of discretionary income or what you would pay under a repayment plan with fixed payments over 12 years, adjusted based on your income.
Cap on Payment Amount None. Your payment may exceed what you would have paid under the standard repayment plan with a 10-year repayment period. What you would have paid under the standard repayment plan with a 10-year repayment period when you entered the plan. What you would have paid under the standard repayment plan with a 10-year repayment period when you entered the plan. What you would have paid under the standard repayment plan with a 10-year repayment period when you entered the plan. None. Your payment may exceed what you would have paid under the standard repayment plan with a 10-year repayment period.
Married Borrowers You must provide income documentation for yourself and your spouse regardless of whether you file a joint or separate Federal income tax return unless you and your spouse (1) are separated or (2) you are unable to reasonably access your spouse's income information. You must provide income documentation for you and your spouse only if you file a joint Federal income tax return. You must provide income documentation for you and your spouse only if you file a joint Federal income tax return. You must provide income documentation for you and your spouse only if you file a joint Federal income tax return. You must provide income documentation for you and your spouse only if you file a joint Federal income tax return or if you and your spouse choose to jointly repay under the plan.
Borrower Responsibility for Interest if Payment Does Not Cover All Interest that Accrues
  • On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for your first 3 consecutive years of repayment under the plan.
  • On subsidized loans after the first consecutive 3 years and on unsubsidized loans during all periods, you are only responsible for paying half of the difference between your monthly payment amount and the remaining interest that accrues.
 On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for your first 3 consecutive years of repayment under the plan. On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for your first 3 consecutive years of repayment under the plan. On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for your first 3 consecutive years of repayment under the plan. You are responsible for paying all of the interest that accrues.
Forgiveness Period
  • If you only have eligible Direct Loans that you received for undergraduate study, any remaining balance is forgiven after 20 years of qualifying repayment on all of your loans.
  • If you have any eligible Direct Loans that you received for graduate or professional study, any remaining balance is forgiven after 25 years of qualifying repayment on all of your loans.

Forgiveness may be taxable.

Any months when you received an economic hardship deferment are considered the equivalent of qualifying payments, but not any months you received any other type of deferment or months you received any type of forbearance.

Any remaining balance is forgiven after 20 years of qualifying repayment, and may be taxable.

Any months when you received an economic hardship deferment are considered the equivalent of qualifying payments, but not any months you received any other type of deferment or months you received any type of forbearance.

Any remaining balance is forgiven after 25 years of qualifying repayment, and may be taxable.

Any months when you received an economic hardship deferment are considered the equivalent of qualifying payments, but not any months you received any other type of deferment or months you received any type of forbearance.

Any remaining balance is forgiven after 20 years of qualifying repayment, and may be taxable.

Any months when you received an economic hardship deferment are considered the equivalent of qualifying payments, but not any months you received any other type of deferment or months you received any type of forbearance.

Any remaining balance is forgiven after 25 years of qualifying repayment, and may be taxable.

Any months when you received an economic hardship deferment are considered the equivalent of qualifying payments, but not any months you received any other type of deferment or months you received any type of forbearance.
Income Requirement to Enter Plan None. You must have a "partial financial hardship". You must have a "partial financial hardship". You must have a "partial financial hardship". None.
Borrower Eligibility Requirement You must be a Direct Loan borrower with eligible loans. You must be a "new borrower" with eligible Direct Loans. You must be a Direct Loan or FFELPProgram borrower with eligible loans. You must be a "new borrower" with eligible Direct Loans. You must be a Direct Loan borrower with eligible loans.
Requirement to Re-certify Income and Family Size Annually. Failure to submit documentation by the deadline will result in being placed on the alternative repayment plan with a payment that will ensure that your loan is paid in full over a period that is the lesser of 10 years or the remainder of 20 or 25 years. Annually. Failure to submit documentation by the deadline will increase the payment amount to the 10-year standard payment amount. Annually. Failure to submit documentation by the deadline will result in the capitalization of interest and increase in payment amount to the 10-year standard payment amount. Annually. Failure to submit documentation by the deadline will result in the capitalization of interest and increase in payment amount to the 10-year standard payment amount. Annually. Failure to submit documentation by the deadline will result in the recalculation of your payment amount to be the 10-year standard payment amount.
Leaving the Plan At any time, you may change to any other repayment plan for which you are eligible. At any time, you may change to any other repayment plan for which you are eligible. If you want to leave the plan, you will be placed on the standard repayment plan. You may not change to a different plan until you have made at least one payment under the standard repayment plan or a payment under a reduced-payment forbearance. If you want to leave the plan, you will be placed on the standard repayment plan. You may not change to a different plan until you have made at least one payment under the standard repayment plan or a payment under a reduced-payment forbearance. At any time, you may change to any other repayment plan for which you are eligible.
Interest Capitalization Interest is not capitalized when you are removed from the plan for failing to re-certify your income by the deadline or when you voluntarily leave the plan. Interest is not capitalized when you are removed from the plan for failing to re-certify your income by the deadline or when you voluntarily leave the plan. If you are determined to no longer have a "partial financial hardship", fail to re-certify your income by the deadline, or leave the plan, interest is capitalized. If you are determined to no longer have a "partial financial hardship", fail to re-certify your income by the deadline, leave the plan, interest is capitalized. Interest that accrues when your payment amount is less than accruing interest on your loans is capitalized annually until the outstanding principal balance on your loans is 10% greater than it was when your loans entered repayment.
Re-Entering the Plan You must provide income documentation for the period when you were not on the SAVE (Formerly REPAYE) plan. Your loan holder will calculate the amount you would have been required to pay under the SAVE plan during that period and compare that to the amount you were required to pay under a different plan over the same period. If the amount you would have been required to pay under the SAVE plan is more than what you actually paid during this period, your new payment amount under the SAVE plan will be increased. The increased amount is equal to the difference between what you were required to pay while not on the SAVE plan and what you would have been required to pay if you had been on the SAVE plan, divided by the number of months remaining in your 20- or 25-year forgiveness period. You must again show that you have a "partial financial hardship". You must again show that you have a "partial financial hardship". You must again show that you have a "partial financial hardship". No restrictions.