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Income-driven repayment

Income-driven repayment plans can base eligible federal student loan payments on income and family size.

What this page covers

This explainer is designed to show what the option is, how the basic mechanics work, and which details people commonly compare before looking at providers, products, or tools.

  • Plain-English steps for how income-driven repayment works.
  • A simple example that shows the moving parts without selecting a product.
  • Comparison factors, calculators, and source links for deeper research.

How it works

1

The borrower checks whether their federal loans are eligible for an income-driven plan.

2

Income and family size are used to calculate the payment under plan rules.

3

The borrower may need to recertify information periodically.

4

Remaining balances and forgiveness rules depend on the specific plan and federal requirements.

Simple example

A borrower compares a standard payment with a payment based on income.

Loan typeFederal
InputsIncome + family size
Plan rulesFederal
Review itemRecertification

Eligibility, payment calculations, interest treatment, and forgiveness rules can change with federal policy.

Common questions

What should I compare before choosing income-driven repayment?

Common factors people compare include loan eligibility, income calculation, family size, recertification, interest treatment, forgiveness rules. Details vary by provider, so it helps to request the same figures from more than one source.

Does this page recommend income-driven repayment?

No. This page explains how the option generally works and lists factors people commonly compare. It does not rank options, select a product, or provide personalized financial, legal, or tax advice.

Where can I find official information about this option?

Official information is available from Federal Student Aid income-driven repayment and Consumer Financial Protection Bureau student loan resources, linked in the Sources panel on this page.

Keep exploring

Back to I have student loans

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Standard repayment

Standard repayment uses scheduled monthly payments over a set repayment term.

Student loan refinance

Student loan refinancing replaces existing student loans with a new private loan, usually with new terms.

Extra payments

Extra student loan payments can change payoff timing and interest cost when applied to principal.