Income-Driven Repayment Plans Compared [2026 Guide]

Income-driven repayment (IDR) plans cap your federal student loan payments based on your income and family size. In 2026, there are five IDR plans available, each with different eligibility requirements, payment calculations, and forgiveness timelines. Choosing the right plan can save you hundreds of dollars per month and tens of thousands over the life of your loans.

All IDR Plans at a Glance

SAVE Plan (No Longer Available)

Update: The SAVE plan was blocked by federal courts in 2025 and is no longer accepting new enrollments. Borrowers previously on SAVE have been transitioned to the RAP (Repayment Assistance Plan) under the 2026 OBBBA legislation. The information below is kept for reference, but RAP is now the recommended IDR plan for most borrowers.

The standout feature is the interest subsidy: if your monthly payment does not cover all the interest that accrues, the government covers the rest. This means your balance will never grow due to unpaid interest, even if your payment is zero dollars. No other IDR plan offers this benefit.

Additionally, borrowers with original balances of $12,000 or less can receive forgiveness after just 10 years, with one additional year per $1,000 borrowed above that threshold. This accelerated forgiveness timeline is unique to SAVE.

Income-Based Repayment (IBR)

IBR comes in two versions. New IBR (for borrowers who took out their first loans after July 1, 2014) caps payments at 10% of discretionary income with forgiveness after 20 years. Old IBR caps payments at 15% with forgiveness after 25 years. IBR is the only IDR plan available to FFEL loan borrowers without consolidation.

A unique feature of IBR is the partial financial hardship requirement: you can only enroll if your IBR payment would be less than your Standard 10-year payment. If your income grows to the point where it would not be, you are moved to the Standard plan amount (but still tracked for forgiveness).

Pay As You Earn (PAYE)

PAYE was the predecessor to SAVE and offers similar terms to new IBR: 10% of discretionary income with forgiveness after 20 years. The key difference is that PAYE has a payment cap: your payment can never exceed what you would pay on the Standard 10-year plan, even if your income rises significantly. This cap can be valuable for high earners.

PAYE is only available to new borrowers as of October 1, 2007, who also received a disbursement on or after October 1, 2011. If you do not meet these requirements, consider SAVE or IBR instead.

Income-Contingent Repayment (ICR)

ICR is the oldest and least generous IDR plan, but it serves an important role: it is the only IDR plan available to Parent PLUS Loan borrowers (after consolidation). ICR calculates your payment as the lesser of 20% of discretionary income or what you would pay on a 12-year fixed payment plan adjusted for income. Forgiveness comes after 25 years.

Which Plan Is Best for You?

For most borrowers, RAP is now the recommended plan since SAVE was blocked by courts in 2025. RAP replaced REPAYE under the 2026 OBBBA and offers competitive payments based on income and debt ratio. The only reasons to consider other plans would be if you need PAYE's payment cap (high earners), have FFEL loans and cannot or prefer not to consolidate (IBR), or have Parent PLUS Loans (ICR after consolidation).