There are four Income-Driven Repayment plans offered currently. This chart breaks down each plan:
Plan | Repayment Period | Monthly Payment Amount | Eligibility | Interest |
PAYE | 20 years | 10% of discretionary income, but no more than 10 year standard repayment amount | New borrowers* with Direct Loans, whose monthly payment would be less than the 10-year standard repayment | If payment doesn't cover all interest, interest will accrue. |
SAVE |
20 years if all loans are from undergrad 25 years if any loans are graduate |
10% of discretionary income | Any borrower with Direct Loans (excludes Parent PLUS Loans) | If payment doesn't cover all interest, the unpaid amount will be covered by the Department of Ed, preventing balances from growing. |
IBR |
20 years if you’re a new borrower on or after July 1, 2014 25 years if you’re a borrower before July 1, 2014 |
10% of your discretionary income if you borrowed loans after July 1, 2014, but no more than the 10-year standard repayment amount 15% of your discretionary income if you borrowed loans before July 1, 2014, but no more than the 10-year standard repayment amount |
Any borrower with Direct Loans, whose monthly payment would be less than the 10-year standard repayment |
If payment is less than interest that accrues, interest will be capitalized if you no longer qualify to make payments based on income, or if you leave plan. |
ICR | 25 years |
The lesser of the following: 20% of your discretionary income, or what you would pay on a 12 year fixed repayment plan |
Any borrower with Direct Loans. This is the only available IDR plan for Parent PLUS Loans. |
If payment doesn't cover all interest, interest will accrue. |
*New borrowers are borrowers that had no outstanding balance on a Direct Loan or FFEL Program loan when they received a Direct Loan or FFEL Program loan on or after Oct. 1, 2007, and they must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.
You may find it difficult to choose the best plan for you, but with Savi we'll compare all your options to help you enroll in the plan that provides you with the most savings. You can explore your eligibility and find options by completing your Savi General Information Application.