Definition
Student loan repayment plans that adjust your monthly payment based on your income and family size, making payments more affordable.
What to consider
- Know how your monthly payments could eventually lead to forgiveness.
- Keep your income documentation updated for accurate calculations.
- Monitor your repayment progress to ensure eligibility over time.
Real world scenarios
- Paula’s student loan payments drop significantly after switching to an IDR plan pegged to her teaching salary.
- With an IDR plan, Greg budgets more easily each month, as payments flex with his freelance income fluctuations.
- After 20-25 years of consistent payments under IDR, some of Rina’s remaining loan balance may be forgiven, offering eventual relief.
Related terms
Related Playbooks
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