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Know Your Repayment Options: Which IDR Plan Should You Use?
Aspects
ICR
IBR 2009
PAYE
IBR 2014
REPAYE
Federal loan types
Direct Only
Direct & FFEL
Partial Financial Hardship test
No
Yes
Minimum payment per month
20% of discretionary income
15% of discretionary income
10% of discretionary income
Maximum payment per month
Standard 12-year plan
Standard 10-year plan
Unpaid interest capitalization limits
10% of starting repayment balance
None
N/A
Unpaid interest accrual net monthly payment
100%
50%
Repayment period (in years)
25
20
Income documentation
Required annually
Spouse income considered
Only if taxes filed jointly
Payments may qualify for PSLF
Forgiveness taxable
Key:
ICR = Income-Contingent Repayment
IBR = Income-Based Repayment (original version first eligible in 2009; updated by law in 2014)
PAYE = Pay as you Earn
REPAYE = Revised PAYE
Dept of ED resource on Income-Driven Repayment Plans