GLOSSARY · DEBT & HOUSING
Income-driven repayment
Federal student loan repayment plans that set the monthly payment as a share of income rather than by the balance, recalculated each year, and forgive any balance left after a set number of years. Private student loans do not offer them. Which plans are open depends on when the loans were disbursed, and the menu changed in 2025 and 2026.
Also called: IDR, IBR, income-based repayment, Repayment Assistance Plan, RAP, income-driven plan
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CHAPTER · UNDERSTANDING YOUR DEBT · FOUNDATIONSMedical Bills, Student Loans and Tax DebtCHAPTER · STUDENT LOAN STRATEGIES · DEEP DIVEFederal Repayment Plans After the 2025 LawRELATED TERMS
SOURCES
- Income-Driven Repayment Plans. U.S. Department of Education, Federal Student Aid.