---
title: "What income-driven repayment plans exist for federal Direct Loans? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources."
canonical: https://www.m-i-n-d.ai/minds/student-loans/income-driven-repayment-plans
jurisdiction: "US Federal"
last_verified: 2026-08-27
license: CC BY 4.0 — https://creativecommons.org/licenses/by/4.0/
attribution: "Source: MIND (m-i-n-d.ai)"
---

# What income-driven repayment plans exist for federal Direct Loans? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.

For federal Direct Loans, five income-driven repayment (IDR) plans exist under 34 CFR 685.209: the Revised Pay As You Earn (REPAYE) plan (also called the Saving on a Valuable Education (SAVE) plan), the Income-Based Repayment (IBR) plan, the Pay As You Earn (PAYE) plan, the Income-Contingent Repayment (ICR) plan, and the Repayment Assistance Plan. As of the regulation, these plans base monthly payments on the borrower's income and family size.

## Details / How it works

Income-driven repayment (IDR) plans under 34 CFR 685.209 base the borrower's monthly payment amount on the borrower's income and family size. There are five IDR plans:

- **REPAYE plan** (Revised Pay As You Earn), also referred to as the **SAVE plan** (Saving on a Valuable Education)
- **IBR plan** (Income-Based Repayment)
- **PAYE plan** (Pay As You Earn)
- **ICR plan** (Income-Contingent Repayment)
- **Repayment Assistance Plan**

## Numbers & thresholds

| Plan | Discretionary income threshold | Notes |
|------|-------------------------------|-------|
| REPAYE (SAVE) | 225% of Federal poverty guideline | Payment is $0 below threshold |
| IBR (new borrower) | 150% of poverty guideline | 10% of discretionary income |
| IBR (non-new borrower) | 150% of poverty guideline | 15% of discretionary income |
| PAYE | 150% of poverty guideline | 10% of discretionary income |
| ICR | 100% of poverty guideline | Lesser of 20% of discretionary income or 12-year fixed payment |

## Exceptions & edge cases

Defaulted loans generally may not be repaid under an IDR plan, with limited exceptions. Direct PLUS Loans made to parent borrowers are not eligible for repayment under REPAYE, PAYE, or the Repayment Assistance Plan. Only Direct Loans made before July 1, 2026, may be repaid under the PAYE, IBR, and ICR plans.

## Sources

- [1] U.S. Government Publishing Office / Department of Education — 34 CFR 685.209 — Income-driven repayment plans for Direct Loans · https://www.ecfr.gov/current/title-34/section-685.209 · as of 2026-08-27