Income-Driven Repayment (IDR) Plans
What are Income-Driven Repayment (IDR) Plans?
Income-driven repayment (IDR) plans are monthly student loan payments that are set at an amount that's intended to be affordable based on your income and family size.
How are Income-Driven Repayment (IDR) Plans Determined?
With an income-driven repayment plan, your monthly payment will most likely be a percentage of your discretionary income. This percentage will vary from person to person.
The Federal Student Aid Office of U.S. Department of Education offers four types of income-driven repayment plans:
- REPAYE Plan - Generally 10% of your discretionary income.
- PAYE Plan - Generally 10% of your discretionary income, but never more than the 10-year Standard Repayment Plan amount.
- IBR Plan - Generally 10% of your discretionary income if you’re a new borrower on or after July 1, 2014*, but never more than the 10-year Standard Repayment Plan amount. Generally 15% of your discretionary income if you’re not a new borrower on or after July 1, 2014, but never more than the 10-year Standard Repayment Plan amount.
- ICR Plan - 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.
Am I Eligible for Income-Driven Repayment?
Each income-driven repayment plan has its own set of eligibility requirements that must be met before you can be considered for an IDR plan:
- REPAYE Plan - Any borrower with eligible federal student loans can make payments under this plan.
- PAYE Plan - To qualify, the payment you’d be required to make must be less than what you would pay under the Standard Repayment Plan with a 10-year repayment period. You must also be a new borrower.
- IBR Plan - To qualify, the payment you’d be required to make must be less than what you would pay under the Standard Repayment Plan with a 10-year repayment period.
- ICR Plan - Any borrower with eligible federal student loans can make payments under this plan. This plan is the only available income-driven repayment option for PLUS loan borrowers with dependents.
Defaulted loans are not eligible for repayment under any of the income-driven repayment plans.
Do I Need to Apply for an Income-Driven Repayment (IDR) Plan?
Yes. You will need to apply for an income-driven repayment plan and recertify your plan each year to remain in the plan.
Paying for College at Goodwin University
At Goodwin University, we believe that paying for college doesn’t have to be complicated. We offer a variety of financial aid opportunities to help take the stress out of paying for your education, including scholarships, grants, student loans, and work-study opportunities that provide a regular paycheck.
Learn more about how our Financial Aid team can ease your financial burden and set you up for success in your future!
We’re Ready When You Are.
- Enrollment is hassle-free, and it’s easy to get started.
- Financial aid is available, and we’re still accepting applications.
- You will find comprehensive support services that will get you through college and into a great career.
- We are veteran-friendly, and we understand and respect the needs of veteran students.
- If you want to transfer in credits, we can typically review your transcripts of prior learning in less than one business day.
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