Income-driven repayment
A federal student loan repayment plan that sets your monthly payment from your income and family size instead of from what you owe.
Income-driven repayment (IDR) plans tie your federal student loan payment to your income. The payment can be as low as $0 a month for some people, and any balance left after the plan's repayment period (20, 25 or 30 years, depending on the plan) may be discharged.
You must update your income and family size every year, called recertifying. The current plans are the Repayment Assistance Plan, Income-Based Repayment, Income-Contingent Repayment and Pay As You Earn. Which ones you can use depends on when your loans were first paid out. StudentAid.gov lists the current rules.
Example
Under IBR, a borrower who first borrowed after July 1, 2014 pays 10% of discretionary income, and never more than the 10-year standard payment.