What are the income-based repayment programs available for student loans?

Income-based repayment programs for student loans are available in California to help borrowers manage their student loan debt. These programs are designed to make payments more affordable by basing payments on the borrower’s income. The California Student Loan Repayment Program (CSLRP) offers income-driven repayment plans that allow borrowers to cap their monthly loan payments at a certain percentage of their income. When a borrower’s income changes, their loan payments will also be adjusted. But payments can never exceed 10% of the borrower’s adjusted gross income. The Income-Based Repayment (IBR) program is a federal plan that’s available to borrowers who have federal student loans. With IBR, borrowers can cap their monthly payments at 10% or 15% of their discretionary income and after 25 years of payments, remaining debt may be forgiven. The Pay As You Earn (PAYE) program is similar to IBR, but payments are capped at 10% of discretionary income. The PLUS Loan Repayment Plan for parents also offers income-based repayment options. In the PLUS loan program, the rate of repayment can be adjusted to fit the borrower’s budget. For borrowers in California, income-based repayment programs can be a great way to manage student loan debt and make payments more affordable. If you need help understanding these programs, you can contact your loan servicer or consult with a student loan attorney.

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What are the income-based repayment programs available for student loans?

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