Everyone's financial goals are different, and there are other factors which might affect which repayment plans you are eligible for. Every plan displayed in the Savi tool, with the exception of Standard, is an income-driven plan. Any of the income-driven plans (IDR) would be eligible for PSLF, however, they are calculated differently. If your goal is the lowest monthly payment, select the lowest available plan to you. If your goal is to pay off your loans as quickly as possible (this might mean a higher payment), select the plan that is most aligned with that goal.
What is IBR?
IBR (Income-Based Repayment) is an income-driven repayment plan (IDR) which calculates your monthly payment as follows:
- Generally 10% of your discretionary income if you are a new borrower on or after July 1, 2014 — not to exceed your Standard Repayment plan amount.
- Generally 15% of your discretionary income if you are NOT a new borrower on or after July 1, 2014 — not to exceed your Standard Repayment plan amount.
Who is IBR available to?
IBR is available only to borrowers with Direct Loans made before July 1, 2026. If your loans were first disbursed on or after July 1, 2026, IBR is not an option for you. The 2014 IBR plan (10% payment rate) is limited to loans made between July 1, 2014 and July 1, 2026.
IBR is available to consolidated Parent Plus Loan borrowers who took out loans and consolidated before July 1, 2026. The borrower must be enrolled in the ICR plan and make at least one payment on this IDR plan between July 4, 2025 and June 30, 2028 to switch to the IBR plan.
Note: The requirement to demonstrate a "partial financial hardship" in order to enroll in IBR has been eliminated. You no longer need to meet that test to sign up.
Eligible Loan Types
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans (graduate or professional students)
- Direct Consolidation Loans that do not contain any Parent PLUS Loans
- Consolidated Parent PLUS Loan borrowers (following the rules above)
Loan Types NOT Eligible
- Direct PLUS Loans made to parents
- Direct Consolidation Loans that contain Parent PLUS Loans
- Loans first disbursed on or after July 1, 2026
Repayment Period
- 20 years if you are a new borrower on or after July 1, 2014
- 25 years if you are NOT a new borrower on or after July 1, 2014
A few other things to consider about IBR
- If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return.
- Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years, depending on when you received your first loans.
- The forgiveness amount will be taxable in the year it is claimed if you are not eligible for PSLF.
- If you leave IBR, your new payment amount will be capped at the equivalent of what you would pay under a standard 10-year repayment plan.
IBR and PSLF
IBR qualifies for Public Service Loan Forgiveness (PSLF). If PSLF is your goal, IBR remains a qualifying repayment plan.
What about SAVE, PAYE, and ICR?
Some previously available income-driven plans are being phased out:
- SAVE (formerly REPAYE) is no longer an eligible repayment plan.
- PAYE and ICR will sunset on July 1, 2028. If you are currently on one of these plans, you will need to transition by that date to IBR, the Repayment Assistance Plan (RAP), Standard, Graduated, or Extended repayment.
- Payments made under PAYE or ICR through June 30, 2028 still count toward PSLF. Payments on or after July 1, 2028 on those plans do not.
- These plans are not available to borrowers whose loans were first disbursed on or after July 1, 2026.
New repayment options starting July 1, 2026
If your loans were disbursed on or after July 1, 2026, your repayment options are the Repayment Assistance Plan (RAP) and the Tiered Standard Repayment Plan. RAP qualifies for PSLF; Tiered Standard does not. Learn more about these plans in our Help Center.
For more information about repayment plans, visit What is an Income-Driven Repayment Plan (IDR)?
Think carefully about your financial goals for your student loans, and which plan best aligns with those goals. Also note: for Income-Driven Repayment plans, you need to recertify your income every twelve months. The plan you select will only reflect the payment amount until you recertify your income again the following year. This means that if your income increases, your payments will also increase — and the same applies if your income decreases significantly.