How Do I Enroll in an Income-Driven Repayment Plan?

If you are asking how do I enroll in an income-driven repayment plan, the short answer is that most federal student loan borrowers can apply online through the U.S. Department of Education, while borrowers with certain older loans enroll through their loan servicer. This guide walks through the enrollment steps, the income-driven repayment plans available, and who qualifies.

It is written for Colorado borrowers managing student loan payments alongside other goals, including the many service members and veterans in the Colorado Springs area who are also planning a home purchase.

How do I enroll in an income-driven repayment plan?

Enrollment in an income-driven repayment (IDR) plan starts at the Department of Education’s online IDR plan enrollment website. That site tells you what types of federal student loans you have, which determines how you apply.

Borrowers with loans owned by the Department of Education — Direct Loans and some Federal Family Education Loan Program (FFELP) loans — can apply online. Borrowers with older, commercially-owned FFELP loans need to contact their loan servicer to enroll instead.

Before you apply, the Department’s Loan Simulator lets you compare income-driven repayment plans and get recommendations that fit your situation. Here is the sequence at a glance:

• Check what types of loans you have on the Department of Education’s IDR enrollment website.
• Use the Loan Simulator to compare IDR plans and estimate which one fits.
• Apply online if your loans are Department-owned; contact the loan servicer if they are commercially-owned FFELP loans.
• Submit updated income documentation to the servicer each year to stay enrolled.

Next, it helps to confirm whether income-driven repayment applies to your loans at all.

Who can use income-driven repayment plans?

Income-driven repayment plans apply to federal student loans, not private student loans. If your loans came from a private lender, IDR enrollment through the Department of Education is not an option for those loans.

Within the federal system, eligibility varies by plan. The SAVE Plan is available for all Direct Loans, while PAYE applies only to borrowers with newer federal loans who meet specific borrowing-date requirements.

Parent PLUS loans cannot be repaid under any income-driven repayment plan directly. However, parent borrowers may consolidate their Direct PLUS loans or Federal PLUS loans into a Direct Consolidation Loan, which does qualify for the income contingent repayment (ICR) plan.

If you are not sure what you hold, the IDR enrollment website identifies your loan types for you. With eligibility confirmed, the next question is which plan to pick.

What are the income-driven repayment plans?

There are four income-driven repayment plans, and each one bases monthly payments on income and family size rather than on the loan balance alone. The differences come down to how the payment is capped, who qualifies, and how forgiveness works.

Saving on a Valuable Education (SAVE) Plan

The Saving on a Valuable Education (SAVE) Plan is the newest income-driven repayment plan and is available for all Direct Loans. It replaced the Revised Pay As You Earn (REPAYE) Plan, and borrowers who were on REPAYE automatically get the benefits of SAVE.

The SAVE Plan lowers payments for almost all borrowers compared to other IDR plans because payments are based on a smaller portion of income. It caps payments at a share of discretionary income and qualifies for Public Service Loan Forgiveness after a set number of years, depending on whether you borrowed for undergraduate or graduate study.

SAVE also has an interest benefit. If you make the full monthly payment but it is not enough to cover the interest that accrued that month, the government covers the rest — which prevents the balance from growing due to unpaid interest.

Pay As You Earn (PAYE) Plan

Pay As You Earn (PAYE) is available to some borrowers with newer federal loans. Monthly payments are capped at a share of discretionary income, and any remaining student loan balance is forgiven after a set number of years of monthly payments.

PAYE is also an eligible repayment plan for borrowers seeking Public Service Loan Forgiveness. Qualifying depends on when you borrowed your first federal student loan and when you received a Direct Loan or Direct Consolidation Loan; the Loan Simulator can tell you whether you meet those cutoffs.

Income-Based Repayment (IBR)

Income-Based Repayment (IBR) caps the payment at the lower of a share of discretionary income or what you would pay under the Standard Repayment Plan over its standard term. The share of discretionary income used depends on when you took out the loan and whether you had existing federal student loans at the time.

IBR tends to produce a lower payment when federal student loan debt is high relative to income and family size. The loan servicer performs the eligibility calculation, but the Loan Simulator can estimate whether you would likely benefit from an IBR plan.

IBR also has an interest feature on subsidized loans: if the monthly IBR payment is less than the interest that accrues, the government pays the difference for an initial period so the overall balance does not increase. Remaining balances are forgiven after a set number of years of payments.

Income Contingent Repayment (ICR)

The income contingent repayment (ICR) plan caps the monthly payment at the lesser of a share of discretionary income or what you would pay on a fixed repayment plan over a set term, adjusted for income. Remaining loan balances are forgiven after a set number of years of payments.

Any borrower with an eligible federal student loan can make payments under the ICR plan, and it is the only income-driven repayment route for Parent PLUS borrowers — after those loans are consolidated into a Direct Consolidation Loan. Once you have a plan in mind, the mechanics of enrollment are straightforward.

Step-by-step: enrolling in an IDR plan

Step 1: identify your loan types

Start at the Department of Education’s online IDR plan enrollment website. It tells you what types of federal student loans you have, which decides whether you can apply online or need to call the servicer.

Step 2: compare plans with the Loan Simulator

It is the right place to estimate how income and family size change the payment under each IDR plan.

Step 3: submit the application

If your loans are Direct Loans or Department-owned FFELP loans, apply through the online enrollment website. If you hold older, commercially-owned FFELP loans, contact the loan servicer directly and ask to enroll in income-driven repayment.

Step 4: recertify every year

IDR enrollment is not one-and-done. The monthly payment adjusts every year based on income and family size, and you must submit documentation to the servicer each year to remain in the program.

Enrollment also connects to a longer-term benefit worth understanding.

Income-driven repayment and Public Service Loan Forgiveness

Income-driven repayment plans matter for borrowers pursuing Public Service Loan Forgiveness because qualifying payments must be made under an eligible repayment plan. Both the SAVE Plan and PAYE are repayment plans that can qualify for Public Service Loan Forgiveness.

For military members and federal employees around Colorado Springs, that pairing — an IDR plan plus public service employment — is a common strategy. Confirm your employment and payment eligibility through the Department of Education rather than assuming.

Student loan payments also show up in another place Colorado borrowers care about: a mortgage application.

Why IDR payments matter when you buy a home in Colorado

A documented income-driven repayment payment is part of that picture, alongside the future housing payment, property taxes, and homeowners insurance.

For service members in the Colorado Springs area, a PCS move often forces the budget conversation: student loan payments, BAH, and a home purchase all land at once. Getting the IDR enrollment and annual recertification squared away before a loan application keeps the documentation clean.

Student loan strategy is a federal process; the mortgage side is where a local loan officer can walk through how the payments fit the full application. Before you act, read the primary source yourself.

What the official source says and where to read it

This article is based on the Consumer Financial Protection Bureau’s guidance on income-driven repayment. The two pages worth reading directly are the CFPB’s explainer on what income-driven repayment plans are and how to qualify and its answer on how to enroll in income-driven repayment.

Both pages point borrowers to the Department of Education’s online IDR enrollment website as the best starting point, and to the Loan Simulator for plan comparisons. Plan terms can change, so treat the Department’s site as the current authority on eligibility cutoffs and payment formulas.

One note on taxes: the tax treatment of forgiven balances and payments varies by situation, so direct those questions to a tax professional. That leaves one concrete action to take today.

What to do next

Go to the Department of Education’s IDR enrollment website, confirm what types of federal student loans you have, and run the Loan Simulator. If your loans are Department-owned, apply online; if they are commercially-owned FFELP loans, call the loan servicer and ask to enroll in an income-driven repayment plan.

If a home purchase in Colorado Springs is also on the horizon, bring your student loan details to the conversation with a loan officer so the debt-to-income math reflects the actual IDR payment. The team at 719 Lending can walk through how documented student loan payments fit into a mortgage application.

Frequently asked questions

Can I enroll in an income-driven repayment plan online?

Usually, yes. Borrowers with loans owned by the Department of Education — Direct Loans and some FFELP loans — can apply through the Department’s online IDR enrollment website. Borrowers with older, commercially-owned FFELP loans need to contact their loan servicer directly to enroll.

Which income-driven repayment plan should I choose?

It depends on your loan types, income, and family size. The four options are the SAVE Plan, PAYE, Income-Based Repayment (IBR), and income contingent repayment (ICR). The Department of Education’s Loan Simulator compares the plans for your situation and gives recommendations before you apply.

Do Parent PLUS loans qualify for income-driven repayment?

Not directly. Parent PLUS loans cannot be repaid under any income-driven repayment plan, but parent borrowers may consolidate Direct PLUS or Federal PLUS loans into a Direct Consolidation Loan, which qualifies for the income contingent repayment (ICR) plan.

Do I have to renew my IDR plan every year?

Yes. The monthly payment under an income-driven repayment plan adjusts each year based on income and family size, and you must submit documentation to the loan servicer every year to remain in the program.

Do income-driven repayment plans count toward Public Service Loan Forgiveness?

The SAVE Plan and PAYE are repayment plans that can qualify for Public Service Loan Forgiveness. Qualifying payments must be made under an eligible plan, so confirm plan and employment eligibility through the Department of Education.

Do private student loans qualify for income-driven repayment?

No. Income-driven repayment plans apply to federal student loans. Private student loans are not eligible for IDR enrollment through the Department of Education, so contact the private lender about any hardship options it offers.

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Last updated: October 2026