Repayment Plans
Repayment Plans
There are two qualifying PSLF repayment plans that base a borrower’s monthly student loan payment on current income.
The income-driven repayment plans include: Income-Based Repayment (IBR) and Pay As You Earn (PAYE) Repayment.
The basic premise for the income-driven repayment plans is that the borrower makes a loan payment based on your discretionary income and family size. This will allow you to keep your payments low while making progress toward the 120 qualifying payments.
Two of the plans (IBR and PAYE) also require that the borrower exhibit a Partial Financial Hardship (PFH) in order to qualify.
Eligibility qualifications for all three plans differ and not all borrowers will qualify for all plans.
For a complete list of eligibility requirements, visit the Federal Student Aid website.