My Fed Loan IDRAPP
- Loan holders can apply for Income Driven Repayment on a student loan to reduce the amount they’re paying each month
- Nearly any federal student loan can be changed by IDR, but the loan holder will need to actually fill out an application to have their loan affected
- The Income Driven Repayment application needs to be sent in by December of each calendar year to impact the following year’s payments
The Income Driven Repayment application is set up for people who have a federal student loan to have their payments changed to reflect their income. Virtually all student loans are eligible for income driven repayment. In fact, if a person’s income is low enough, their student loan payment may be reduced to be as low as $0. One of the biggest advantages of income driven student loan programs is that after a certain time, they’re forgiven. If people work in a public service job (meaning a job that’s with a 501(c)(3) non profit, teacher, or public servant), their loan is forgiven after they’ve made just 120 payments (or 10 years). For people who are in a private job, their loan is forgiven after 10 years. How much are student loan payments through the IDR program? As a general rule, IDR payments on a student loan will not go above 10% of an applicant’s discretionary income for new borrowers. For people who aren’t new borrowers, their payment will not be above 15% of their discretionary income. IDR renewal will need to happen each year, with the loan holder sending in their tax documents to confirm their income.
To contact a representative about the income driven repayment program
If loan holders want to call someone about applying for the IDR program, they’ll need to speak with their specific loan holder. But if contacting the loan company doesn’t help, they will need to contact the Ombudsman Group at:
- U.S. Department of Education, FSA Ombudsman Group, P.O. Box 1843, Monticello, KY 42633