The U.S. Department of Education’s Federal Student Aid Office has provided the following information to help you understand some of your repayment options for direct federal loans: Income Driven Repayment Plans and Public Service Loan Forgiveness. 

Income Driven Repayment Plans:

Income Driven Repayment Plans are designed to reduce your monthly payments and make your student loan debt more manageable. There are three types of Income Driven Repayment Plans:

  1. Income-Based Repayment Plan (IBR)

    • For new borrowers on or after July 1, 2014, the IBR plan generally is 10% of your discretionary income, but never more than the 10-year Standard Repayment Plan, paid out over 20 years.

    • For not new borrowers on or after July 1, 2014, the IBR Plan is generally 15% of your discretionary income, but never more than the 10-year Standard Repayment Plan, paid out over 25 years.

  2. Pay As You Earn Repayment Plan
    • Generally 10% of your discretionary income, but never more than the 10-year Standard Repayment Plan, paid out over 20 years

  3. Income-Contingent Repayment Plan (ICR)

    • The lesser of the following:
      • ​20% of your discretionary income or

      • What you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income 

 To learn more about eligibility and the details of each of these repayment plans, see the  Income Driven Repayment Plan Fact Sheet.

Public Service Loan Forgiveness Programs:

The Public Service Loan Forgiveness (PSLF) program is intended to encourage individuals to enter and continue to work full-time in public service jobs. You are eligible for the PSLF if you make 120 on-time, full, scheduled monthly payments on your Direct Loans under a qualifying payment plan while working full-time at a qualifying public service organization. After your last payment, you can submit the PSLF application to receive loan forgiveness on outstanding debt.

To learn more about the PSLF program, see the  Public Service Loan Forgiveness Program and  Public Service Loan Forgiveness Program FAQ.