Income-driven repayment (IDR) plans are designed to make your student loan debt more manageable by giving you a monthly payment based on your income and family size.
IDR plan allows to make payments based on your earnings for a set number of years, depending on your plan & forgive your remaining balance after 20 or 25 years of payments.
Eligibility for Income-Driven Repayment Plan is based on your income, family size, your loan balances and the types of federal student loans you have.
The U.S. Department of Education offers four types of income-driven repayment plans, which are ICR Plan, IBR Plan, PAYE Plan and REPAYE Plan.
Repayment term is 25 years for ICR, IBR and borrowers who have graduate school loans under REPAYE & 20 years for PAYE and borrowers who have only undergraduate loans under REPAYE.
During first 3 years federal government pays 100% of accrued but unpaid interest on subsidized loans in IBR, PAYE and REPAYE & 50% of accrued but unpaid interest on unsubsidized loans in REPAYE.