How to Qualify for Income-Driven Repayment Plans

There is a ton of focus on getting into and paying for college. However, after those four (hopefully!) years, young adults must often face the task of not only finding employment but also repaying college student loans. There are many different ways to tackle student loan repayment. Let’s take a look at one option available: Income-Driven Repayment (IDR) Student Loan Plans.

Income-Driven Repayment Plans

Learn how to negotiate and appeal for additional financial aid >>

How to Qualify for Income-Contingent Repayment (ICR) Plan

To qualify for an income-driven repayment (IDR) plan for federal student loans, you must generally have federal Direct Loans, such as Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans that did not repay any PLUS loans made to parents. Some borrowers with Federal Family Education Loan (FFEL) Loans and Perkins Loans may also be eligible for IDR plans if they consolidate their loans into a Direct Consolidation Loan.

Once you have determined that you have the right type of loans, you will need to apply for the IDR plan that you wish to enroll in. Each IDR plan has different eligibility requirements and application procedures, but in general, you will need to provide information about your income, family size, and loan balance.

Financial Aid Timeline: A Family Guide >>

To demonstrate partial financial hardship, which is required to qualify for some IDR plans, you will need to show that your monthly payment under the Standard Repayment Plan is higher than the payment amount you would owe under an IDR plan. The payment amount under an IDR plan is generally calculated as a percentage of your discretionary income.

It is important to note that if you are married and file taxes jointly, your spouse's income and federal student loan debt may also be considered when determining your eligibility and payment amount under an IDR plan.

Overall, if you are struggling to make your monthly student loan payments, an IDR plan can be a good option to consider. Be sure to carefully review the eligibility requirements and application procedures for each IDR plan to determine which plan is best for your individual circumstances.

Learn how to earn scholarships to pay for college >>

There is a lot to be gained from our free general financial aid advice, but it’s also a very individual process. If you have remaining financial aid questions, email us to discuss more or book an individual session.