IDR Plan Comparison

2024-05-01

# IDR Plan Comparison: Which Saves You the Most?

Choosing the right income-driven repayment plan can save you thousands. Here's how the plans compare.

Payment Percentage

PlanPayment %Forgiveness
------------------------------
SAVE5-10%10-20 years
PAYE10%20 years
IBR10-15%20-25 years
ICR20%25 years

Key Differences

### SAVE Plan (When Available) - Lowest payments (5% for undergrad) - 100% interest subsidy - Blocked by courts as of 2024

### PAYE Plan - Payment cap protects high earners - Strict eligibility requirements - No interest capitalization if staying in plan

### IBR Plan - Available to all borrowers - Spouse income excluded if filing separately - Higher payment percentage

### ICR Plan - Only option for Parent PLUS borrowers - Highest payment percentage - Always counts spouse income

How to Choose

1. **New borrower with high debt**: PAYE 2. **Older loans**: IBR 3. **Parent PLUS loans**: ICR (after consolidation) 4. **When SAVE becomes available**: SAVE (for most borrowers)

Use our IDR calculator to compare your specific situation.