Federal Student Loan Forgiveness Program

Income-Driven Repayment Forgiveness

Federal Income-Driven Repayment (IDR) plans can reduce your monthly payments to as low as $0 based on your income and family size — and forgive any remaining balance after 20-25 years of qualifying payments.

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What Is IDR Forgiveness?

Income-Driven Repayment (IDR) plans are federal student loan repayment options that calculate your monthly payment amount based on your income and family size — not on how much you owe. After making qualifying payments for 20 to 25 years (depending on the plan), any remaining loan balance is forgiven by the Department of Education.

Available IDR Plans

Saving on a Valuable Education (SAVE) Plan

Monthly Payment: 5-10% of discretionary income

Forgiveness Timeline: After 20 years (undergrad) or 25 years (graduate)

The newest and most generous IDR plan. Replaces REPAYE and offers the lowest monthly payments for most borrowers. Interest subsidy prevents balance growth if your payment doesn't cover accruing interest.

Pay As You Earn (PAYE) Plan

Monthly Payment: 10% of discretionary income, never more than 10-year Standard Plan amount

Forgiveness Timeline: After 20 years

Designed for newer borrowers. Monthly payments are capped at the 10-year Standard Plan amount and any remaining balance is forgiven after 20 years of qualifying payments.

Income-Based Repayment (IBR) Plan

Monthly Payment: 10% or 15% of discretionary income depending on when you borrowed

Forgiveness Timeline: After 20 years (new borrowers) or 25 years

Available to most federal loan borrowers. Your payment percentage depends on when you first borrowed. The forgiven amount may be considered taxable income under current law.

Income-Contingent Repayment (ICR) Plan

Monthly Payment: 20% of discretionary income or a fixed 12-year payment amount, whichever is less

Forgiveness Timeline: After 25 years

The only IDR plan available to Parent PLUS loan borrowers (after consolidation). Generally the highest monthly payment among IDR options but available to the broadest range of borrowers.

Key Benefits

Monthly payments as low as $0 based on your verified income

Remaining balance forgiven after 20-25 years of qualifying payments

Payments count toward PSLF if you work in public service

Protection from economic hardship with income-based calculations

Annual recertification ensures payments always match your situation

Interest subsidies on certain plans prevent balance growth

Who Qualifies

You have eligible federal student loans (Direct, FFEL, Perkins)

Your income and family size would benefit from income-based payments

You are willing to recertify your income and family size annually

You want monthly payments you can actually afford

You're seeking long-term loan forgiveness after 20-25 years

You work in public service and want payments that count toward PSLF

IDR Forgiveness by the Numbers

8M+

Borrowers on IDR Plans

Minimum Monthly Payment

20-25

Years to Forgiveness

Plan Options Available

Find the Right IDR Plan for Your Situation

Our experts analyze your income, family size, and loan portfolio to identify the best IDR plan for your specific situation — maximizing your savings and setting you on the path to eventual forgiveness.

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