Income-Driven Repayment (IDR) for federal student loans
Student loan payments based on income — as low as $0/month
What it pays or provides
Income-driven repayment doesn't pay you money directly -- it caps your monthly federal student loan payment based on your income and family size instead of your loan balance, so payments can be much lower than the standard plan. The SAVE plan was ruled unlawful and stopped being an option; loans that were on SAVE started accruing interest again on August 1, 2025. A new plan, the Repayment Assistance Plan (RAP), became available starting July 1, 2026, with monthly payments between 1% and 10% of your income, reduced by $50 a month for each dependent you have. If your on-time payment doesn't cover the month's interest, RAP waives the rest; if it doesn't reduce your loan balance by at least $50, the government adds up to $50 toward your principal.
Who qualifies
Anyone with federal student loans can apply for an income-driven plan -- your payment is set by your income and family size, and it can be $0 a month if your income is low enough. If you were on the SAVE plan, you've already been moved off it and need to pick a new plan. Income-Based Repayment (IBR) is still open. If you have older loans from before July 1, 2026, you have until July 1, 2028 to choose between RAP, the new Tiered Standard plan, or IBR.
How other benefits affect it
Choosing a repayment plan doesn't affect other benefits, but a lower federal student loan payment can free up money in your budget for rent, food, or other bills.
How to apply
Apply free at studentaid.gov -- never pay a company to enroll or 'help' you sign up for income-driven repayment. If your loan servicer already contacted you about switching off SAVE, follow their instructions to pick a new plan before your grace period or deadline runs out.
Sources
- Official rule text “With an income-driven repayment (IDR) plan, you can make lower monthly payments on your federal student loans based on your income and family size.” (checked July 6, 2026)
- Official rule text “the Eighth Circuit Court of Appeals held that the SAVE Plan is unlawful ... Loans in SAVE Plan Will Begin Accruing Interest on August 1st.” (checked July 19, 2026)
- Official rule text “Monthly payments are between 1 and 10 percent of a borrower's income, depending on how much they earn ... borrowers currently in phased-out plans will have until July 1, 2028, to decide between the Repayment Assistance Plan, Tiered Standard plan, or the Income-Based Repayment (IBR).” (checked July 19, 2026)