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IBR vs. ICR vs. REPAYE: How these repayment plans stack up

It all depends on your degree type, when you took out the loan and if you're a student or parent borrower.

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Anna Serio
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The Revised Pay As You Earn (REPAYE) Repayment Plan could be a better deal if you have newer loans from undergraduate school. But the Income-Based Repayment (IBR) Plan might be the way to go if you have graduate student loans issued after 2014. Both plans offer a better option than the Income-Contingent Repayment (ICR) Plan — unless you’re a parent borrower.

How these federal repayment plans compare

Income-Based Repayment (IBR) Plan Income-Contingent Repayment (ICR) Plan Revised Pay As You Earn (REPAYE) Repayment Plan
Best for... Student borrowers looking for income-driven repayments on FFEL Loans that haven’t been consolidated Parent and student borrowers who want higher monthly income-driven repayments to save on interest Student borrowers who are single and paying off undergraduate debt in a low-paying field
Eligible loans
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct Graduate PLUS Loans
  • Direct Consolidation Loans — can't include Direct or FFEL Parent PLUS Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • FFEL Graduate PLUS Loans
  • FFEL Consolidation Loans — can't include FFEL Parent PLUS Loans
  • Federal Perkins Loans*

*Only qualify if consolidated with a Direct Consolidation Loan.
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct Graduate PLUS Loans
  • Direct Consolidation Loans — can include Direct Parent PLUS Loans
  • Subsidized Federal Stafford Loans*
  • Unsubsidized Federal Stafford Loans*
  • FFEL Graduate PLUS Loans*
  • FFEL Consolidation Loans* — can include FFEL Parent PLUS Loans
  • Federal Perkins Loans*

*Only qualify if consolidated with a Direct Consolidation Loan.
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct Graduate PLUS Loans
  • Direct Consolidation Loans — can't include Direct or FFEL Parent PLUS Loans
  • Subsidized Federal Stafford Loans*
  • Unsubsidized Federal Stafford Loans*
  • FFEL Graduate PLUS Loans*
  • FFEL Consolidation Loans* — can't include FFEL Parent PLUS Loans
  • Federal Perkins Loans*

*Only qualify if consolidated with a Direct Consolidation Loan.
How much you pay
  • 10% or 15% of your monthly discretionary income — depending on when your loan was first issued
  • Never more than what you'd pay on the Standard Repayment Plan
  • 20% of your monthly discretionary income*
  • Fixed monthly repayments on a 12-year term*

*You’ll pay the lesser of these two options.
  • 10% of your monthly discretionary income
Repayment Term
  • 20 or 25 years — depending on when your loan was first issued
  • 25 years
  • 20 years on undergraduate loans
  • 25 years on graduate loans
Eligibility requirements
  • Eligible loans
  • High-enough debt-to-income ratio that repayments are lower than what they'd be on the Standard Repayment Plan
  • Eligible loans
  • Eligible loans
Eligible for forgiveness at the end of the term
Eligible for Public Service Loan Forgiveness
Required to reapply each year

Yes

Yes

Yes
Pros
  • Repayments adjust with your income
  • Cap on monthly repayments
  • Spousal income won't count if you file taxes separately
  • Open to parent borrowers
  • Save on interest compared to other income-driven repayment plans
  • Repayments adjust with your income
  • Cap on monthly repayments
  • Spousal income won't count if you file taxes separately
  • Repayments adjust with your income
  • No age limits for eligible loans
Cons
  • Not open to parent borrowers
  • Longer term and higher monthly repayments for older loans
  • More paperwork annually
  • No FFEL Loans
  • Highest monthly cost of income-driven repayment plans
  • More paperwork annually
  • More expensive for married couples
  • No cap on monthly repayments
  • Longer term for graduate student borrowers
  • More paperwork annually
Learn more
Learn more
Learn more

Check out even more plans with our guide to student loan repayment plans.

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