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What is the difference between a Standard repayment, Pay As You

Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Driven
Plan (IDR) for student loans?

User Leem
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1 Answer

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Final answer:

The differences between Standard repayment, PAYE, REPAYE, and IDR for student loans lie in the payment structure and forgiveness eligibility.

Step-by-step explanation:

Standard Repayment: This repayment plan has fixed monthly payments over a period of 10 years.

Pay As You Earn (PAYE): This plan caps your monthly payments at 10% of your discretionary income and forgives any remaining balance after 20 years of payments.

Revised Pay As You Earn (REPAYE): Similar to PAYE, this plan also caps your monthly payments at 10% of your discretionary income but extends the repayment period to 25 years for undergraduate loans and 30 years for graduate loans.

Income-Driven Plan (IDR): This encompasses several plans, including PAYE and REPAYE, and generally allows monthly payments to be based on your income and family size.

User Yasin YILDIRIM
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