Frequently Asked Questions

Income Driven Repayment or IDR is a group of programs that were developed by the US Department of Education to allow qualified borrowers the opportunity to have their monthly payment amounts determined according to their current level of income. There are currently 4 existing IDR plans - ICR (Income Contingent Repayment), IBR (Income Based Repayment New & Old), PAYE (Pay As Your Earn), & RAP (Repayment Assistance Plan).  Each Program has specific qualifications, benefits and restrictions for individual borrowers.  All programs are designed to aid borrowers in keeping monthly payments in line with their income level instead of being based on their overall loan balance.

The IDR Waiver - or Income Driven Repayment Plan Waiver - was introduced in April of 2022.  This waiver was created to address the large number of borrowers that exist who have been paying on older Federal Loans and may have been able to qualify for long term forgiveness programs, but had not been enrolled in a qualifying IDR plan.  The US Department of Education committed to a one time adjustment of the repayment counts on any borrower account that qualifies.    Borrowers with commercially held FFEL loans needed to consolidate into Direct loans by June 30, 2024 in order to take advantage of the IDR Waiver.  The Waiver was completed in January of 2025 and is part of borrowers internal NSLDS files at studentaid.gov.

t can. Under current federal student loan rules, tax filing status can significantly affect the income used to calculate an income-driven repayment payment. For RAP and IBR, married borrowers who file a joint federal tax return generally have both spouses' income considered, while married borrowers filing separately generally have only the borrower's income considered. However, choosing Married Filing Separately can increase a household's overall tax liability or eliminate certain tax benefits. That means a lower student loan payment does not automatically make separate tax filing the better financial decision. Married borrowers should compare both the student loan savings and the tax consequences before choosing a filing strategy.

​The Repayment Assistance Plan, or RAP, is a new income-driven repayment plan available beginning July 1, 2026. Payments generally range from 1% to 10% of adjusted gross income, with a minimum monthly payment of $10 and a $50 monthly reduction for each qualifying dependent. One important feature of RAP is that unpaid monthly interest is waived when the borrower makes the required on-time payment, helping prevent balances from growing solely because the calculated payment does not cover interest. RAP also provides a limited government principal contribution when a borrower's payment does not reduce principal by at least $50. RAP has a repayment period of up to 30 years before any remaining eligible balance may be discharged.

Parent PLUS loans have their own repayment rules and should not be treated the same as federal student loans borrowed by students. New Parent PLUS loans themselves are not eligible for RAP, IBR, PAYE, or ICR. However, some Parent PLUS borrowers who completed qualifying consolidation steps before July 1, 2026 may have access to income-driven repayment options based on their existing loan history. Parent PLUS loans consolidated after July 1, 2026 are subject to different restrictions, so the date and history of the consolidation matter considerably. Parent borrowers should review their individual loans before consolidating or changing repayment plans because those decisions can affect future repayment and forgiveness options.

Yes. Public Service Loan Forgiveness remains available to eligible federal student loan borrowers working full-time for qualifying public service employers. PSLF can forgive the remaining balance of eligible Direct Loans after the borrower meets the program's requirements, including 120 qualifying monthly payments. Most payments made under an eligible income-driven repayment plan can count toward PSLF when the borrower also meets the employment and loan requirements. The new RAP plan can also be used by eligible borrowers pursuing PSLF. Borrowers pursuing PSLF should regularly certify their employment and monitor their qualifying payment history rather than waiting until they believe they have reached 120 payments.

Long Term Forgiveness is an option for borrowers who do not qualify for PSLF because they do not work for a qualifying employer, but they are enrolled in an income driven plan.  Depending on the IDR plan they are enrolled in, Long Term Forgiveness Borrowers need to make 20/25 or 30 years of payments and then any loan balance that is left will be forgiven. Currently federal tax is due on the forgiven amount as of January 1, 2026 but that rule could change in the future.

Major changes to federal student loan borrowing and repayment took effect on July 1, 2026. Borrowers now need to pay particular attention to when their loans were borrowed, because loans borrowed before July 1, 2026 may have different repayment options than loans borrowed on or after that date. A new income-driven repayment option, the Repayment Assistance Plan (RAP), became available, along with a new Tiered Standard repayment structure. New federal borrowing limits also affect graduate and professional students and Parent PLUS borrowers. Because different rules can apply to different groups of borrowers, repayment planning has become increasingly dependent on your individual loan history.

Many borrowers whose federal student loans were disbursed before July 1, 2026 may continue to qualify for the Income-Based Repayment (IBR) Plan. IBR generally calculates payments using either 10% or 15% of discretionary income, depending on when the borrower first borrowed federal student loans. Unlike RAP, IBR also places a cap on the calculated payment based on the applicable 10-year Standard payment amount. Borrowers with older loans may therefore have more than one repayment option available and should compare the long-term cost of each plan rather than focusing only on the lowest monthly payment. Loan type, borrowing history, income, forgiveness goals, and whether the borrower is pursuing PSLF can all affect which option makes the most sense.

Ignoring a federal student loan payment is generally the worst option because prolonged delinquency can eventually lead to default and loss of important borrower protections. Depending on your loans, you may be able to change repayment plans, request an income-based payment, or qualify for a temporary deferment or forbearance. Borrowers already in default may have options such as loan rehabilitation or consolidation to return their loans to good standing. Successfully rehabilitating an eligible federal student loan removes the loan from default and restores access to federal student aid and other loan benefits. The best solution depends on your loan type, income, repayment history, and whether your long-term goal is repayment, PSLF, or another form of federal loan forgiveness.