> $30k/yr). PAYE is 20 years long for both undergrad and graduate loans. ... Those with Federal Family Education Loans, on the other hand, may only apply for the Income-Based Repayment Plan (IBR Plan). More guides on Finder. Income-driven repayment plans can help lower your monthly student loan payment. (For RePAYE, as for PAYE and IBR, discretionary income is defined as the difference between your annual income and 150 percent of the federal poverty guideline for … Go for a longer term or income-driven repayments if your student loans are eating up too much of your income. As I’m now doing my taxes and trying to decide how my wife and I should file (married jointly vs separately), I’ve come to the realization that under almost no circumstance does switching from IBR to REPAYE work in one’s favor if your spouse earns any meaningful amount of income (i.e. The forgiveness timelines between IBR, PAYE, and REPAYE are different (25 years, 20 years, and 20/25 undergraduate vs graduate, respectively). Under these plans, your monthly payment is based on your income and family size. PAYE and REPAYE vs. other income-driven repayment. This is not a big deal now, since she is also paying off student loans, but it will make my payment jump significantly when her loans are forgiven in 9 years. Unlike REPAYE, IBR was passed into law by an act of Congress and signed by the President. The REPAYE Alternative repayment plan period is the lesser of 10 years or whatever is left on your 20- or 25-year REPAYE repayment period and the monthly payment amount will be a fixed amount that will pay your loans in full during that period. Difference #1: Term. Income-Based Repayment (IBR) Best for: Recent borrowers who can’t afford the standard 10-year repayment plan, don’t qualify for PAYE, and don’t expect to qualify for loan forgiveness under REPAYE or for borrowers who have older FFEL loans and don’t want to fold them into a federal direct consolidation loan Available to borrowers since 2009, IBR remains the most popular IDR plan. As a result, IBR should be seen as a more stable plan. Summary of IBR vs PAYE vs REPAYE. If you took out loans on or after July 1, 2014, IBR would lower your monthly payments to 10% percent of your discretionary income. It limits payments to either 10% or 15% of your discretionary income, depending on the type of loan, whereas ICR caps payments at 20%. I know the REPAYE plan uses our combined income. IBR vs. ICR vs. REPAYE: How these repayment plans stack up Income-driven repayment plans. Forgiveness Details Note: If you are using either of these strategies, you do not want to refinance your student loans. If you choose to leave REPAYE, any unpaid accrued interest will be capitalized. If you do, then you will not qualify to use these plans. IDR plans include Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) Plans. However, from my math, I would only pay slightly more with the REPAYE plan vs staying on the IBR plan when that happens. Thus, if a new President wanted to eliminate REPAYE immediately, it could be done. 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