Income-driven plans offer the following benefits:

• If you repay your loan under any of the income-driven plans and if you still have a loan balance after 20 or
25 years of qualifying repayment, the remaining balance will be forgiven (this time period
varies depending on the plan and other factors).
• Payments you make on your Direct Loans under any income-driven plan count toward the 120 payments
that are required for the Public Service Loan Forgiveness Program (PSLF).
• Under the IBR and Pay As You Earn plans, if your monthly payment doesn’t cover the full amount of
interest that accrues on your loans each month, the government will pay any unpaid, accrued interest on
your subsidized loans for up to three consecutive years from the date you begin repaying the loans under
the plan.

For more information go to the Income-Driven Repayment Plans: Frequently Asked Questions Website