Qualifying for IDR loan forgiveness takes two steps:
Step 1: Choose a repayment plan.
Each repayment plan caps payments at a portion of your discretionary income, which is based on your adjusted gross income (AGI) and family size. Most borrowers with Direct Loans are eligible for IBR, REPAYE, and PAYE plans. Parent PLUS Loan borrowers are eligible to enroll in the ICR plan only. Borrowers with loans made under the Federal Family Education Loan Program are eligible for IBR and ICR. They can gain access to REPAYE if added to a Direct Consolidation Loan.
You can apply for an IDR plan on the Federal Student Aid website, studentaid.gov, or by sending your student loan servicer a paper request form.
Learn More: What Is Considered a Significant Change in Income?
Step 2: Make the qualifying payments.
Depending on which plan you choose and if you borrowed loans for graduate school, you must make either 240 or 300 payments. Your monthly payment amount can vary each year as your income and family size change. To stay in a plan, you must recertify income-based repayment annually or whenever your income changes to get your loans and any unpaid interest written off.
Learn More: Student Loan Forgiveness After 20 Years