Income Based Student Loan Repayment Options

Pay As You Earn, Income Based Repayment, Income Contingent Repayment
  1. Pay As You Earn - To qualify for Pay As You Earn you must demonstrate a partial financial hardship. I.E. the annual amount due under a standard 10 year repayment plan exceeds the amount you would pay under Pay As You Earn. And your qualifying loans cannot be in default.
  2. Income Based Repayment - To qualify you must demonstrate a partial financial hardship. I.E. the annual amount due under a standard 10 year repayment plan exceeds 15 percent of your discretionary income. And your qualifying loans cannot be in default. If your annual earnings are less than the balance on your eligible loans you should qualify.
  3. Income Contingent Repayment - To be eligible for ICRP you need to have more than $30,000 in federal education loan debt with a single lender. If you do not meet this threshold you will need to consolidate your loans and have a balance exceeding $40,000 for the consolidated loans to be eligible.