How to Apply for an IDR Plan: Eligibility, Steps, and Recertification

To apply for an IDR plan, log in at studentaid.gov/idr and complete the Income-Driven Repayment Plan Request, which most borrowers finish in about ten minutes. The form asks for your income and family size, transmits the information to your loan servicer, and either sets you on a specific plan you choose or on whichever plan gives you the lowest monthly payment. Payments can drop to as low as $0 depending on your earnings. Before you start, know which plan you’re aiming at, because the options available in 2026 are narrower than they were a year ago.

Pick the Plan You’re Actually Applying For

Four income-driven repayment plans exist in federal regulation: SAVE (formerly REPAYE), Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR).¹ In practice, you have fewer real choices than that list suggests.

SAVE is effectively closed. In December 2025, the Department of Education announced a proposed settlement that would end the plan, deny pending applications, and move existing SAVE borrowers into other plans.² Do not apply for SAVE.

PAYE and ICR are open to new enrollees through July 1, 2027, under a revised deadline from the Department of Education.³ That window could close earlier through future rulemaking.

IBR is the most broadly available plan for new applicants in 2026. It has no enrollment sunset and accepts both current and defaulted Direct Loans.⁴ If you have no strong reason to pick one of the others, IBR is the working default. If you’re unsure, the form lets you skip the plan choice and ask your servicer to place you on whichever plan produces the lowest payment.

Confirm Your Loans and Situation Qualify

Loan Type

Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans to graduate or professional students qualify for IBR, PAYE, and ICR. Direct Consolidation Loans qualify too, as long as they did not repay a parent PLUS loan.⁴

Older Federal Family Education Loan (FFEL) program loans do not qualify directly. Consolidate them into a Direct Consolidation Loan first, then apply.⁵

Parent PLUS loans are the most restricted. They are not eligible for IBR or PAYE under any circumstances. The only route is to consolidate the Parent PLUS into a Direct Consolidation Loan and then enroll in ICR.⁶ Know that before you consolidate: ICR payments tend to run higher than other IDR plans.

Private student loans are not eligible for any federal repayment program, and consolidation doesn’t change that.⁷

Partial Financial Hardship

IBR and PAYE require a “partial financial hardship.” You meet it if the annual payment you’d owe on a standard 10-year plan exceeds a set percentage of your discretionary income: 15% for IBR borrowers whose loans predate July 1, 2014, and 10% for newer IBR borrowers and all PAYE borrowers.¹

Discretionary income is your adjusted gross income minus 150% of the federal poverty guideline for your household size. In 2026, the individual guideline in the 48 contiguous states is $15,960, so 150% is $23,940.⁸ Most borrowers with meaningful loan balances relative to their income clear the threshold. ICR does not require a partial financial hardship; anyone with eligible loans can enroll.⁴

Default

Defaulted loans are not eligible for most IDR plans. Rehabilitate or consolidate out of default first.⁶ IBR is a partial exception, since the regulation explicitly lists defaulted loans as eligible.⁴ Clearing default before applying still avoids complications and protects your credit.

What to Have Ready

The application is the Income-Driven Repayment Plan Request, available online at studentaid.gov/idr or as a downloadable PDF.⁹ Gather this before you start:

Your Social Security number and FSA ID for login and identity verification.
Your most recent federal tax return. The form can pull your adjusted gross income directly from the IRS; if that transfer works, you won’t enter income figures by hand.¹⁰
Your household size: you, your spouse if you file jointly, your children who receive more than half their support from you, and any other dependents living with you who receive more than half their support from you.¹
Alternative income documentation if you haven’t filed taxes recently or your income has dropped since your last return: pay stubs, an employer letter, or a written statement certifying no income. Supporting documents must be dated within 90 days of your signature, except tax returns, which can be up to a year old.¹⁶

If You’re Married, Understand How Filing Status Changes Your Payment

Under IBR, PAYE, and ICR, a joint tax return puts both spouses’ incomes into the payment calculation. Filing separately means only your income counts.¹¹

When joint income is used, the Department of Education also considers your spouse’s federal student loan debt and prorates your payment based on your share of the combined balance.¹¹ Filing separately to shrink an IDR payment can cost you the student loan interest deduction, the child care tax credit, the Earned Income Tax Credit, and more favorable brackets. Run the numbers both ways or talk to a tax professional before you commit.

Submitting the Application

Online is faster and less error-prone. Log in at studentaid.gov/idr, follow the guided prompts, authorize the IRS data transfer, review your entries, and sign electronically. The system sends your information to your loan servicer once you confirm.⁹

If you prefer paper, download the PDF, fill it out, and mail it to your servicer at the address listed on the form. Handwrite all signatures, keep every attachment legible, and use a mailing method that provides delivery confirmation. Keep copies. Paper takes longer, and illegible attachments are one of the most common causes of rejection.

What Happens After You Submit

Your servicer may place your loans in a processing forbearance for up to 60 days while it reviews the application.⁶ You don’t owe monthly payments during that window, but interest keeps accruing. The Consumer Financial Protection Bureau has said processing should ideally take no more than two weeks, though many borrowers report longer waits.¹²

When processing finishes, you’ll get a notice with your new monthly payment and its effective date. If your application is denied, the notice explains why. The most common reasons are an ineligible loan type and missing documentation, both fixable.

Recertify Every Year

Enrolling once is not the end. You must recertify your income and family size every year, typically around the anniversary of your enrollment, even if nothing has changed.¹³ Recertification uses the same form and the same IRS data transfer as the original application.

Missing the deadline hurts. Your payment reverts to the higher standard repayment amount, and under most plans any unpaid interest capitalizes onto your principal, so you start paying interest on interest. Set a calendar reminder well before your recertification date rather than relying on servicer notifications.

Adjusting Your Payment if Income Drops

You don’t have to wait until recertification if your circumstances change. If you lose your job, your hours are cut, or your family size grows, you can request an immediate recalculation. Log in at studentaid.gov and select “Manage Your Plan” on the IDR Plan Request page, or send documentation directly to your servicer. You’ll need proof of the change, such as pay stubs showing reduced income, dated within 90 days.⁶ Do it promptly; overpaying for months defeats the purpose of an income-driven plan.

Forgiveness at the End, and the 2026 Tax Change

Every IDR plan forgives whatever balance remains after a set number of qualifying payments. Timelines vary by plan:

IBR for new borrowers after July 1, 2014: 20 years.
IBR for borrowers before July 1, 2014: 25 years.
PAYE: 20 years.
ICR: 25 years.¹⁴

Months where your calculated payment is $0 still count. You need to be properly enrolled with a correctly calculated payment; you don’t need to send money each month for the clock to run.

The tax picture changed on January 1, 2026. The American Rescue Plan Act’s temporary exclusion of forgiven student loan debt from federal taxable income has expired. A balance forgiven under an IDR plan after that date is treated as taxable income by the IRS. On a $50,000 forgiven balance, that could mean a five-figure tax bill in the year of forgiveness. Public Service Loan Forgiveness is not affected and remains tax-free.¹⁵

If Your Servicer Loses or Mishandles the Application

If a servicer misplaces your application, takes months to process it, or calculates your payment incorrectly, put the dispute in writing with copies of your application, any confirmation receipts, and a clear description of the problem. Ask for the servicer’s escalated issues department or internal ombudsman. If that fails, file a complaint with the Federal Student Aid Ombudsman through studentaid.gov, and separately with the Consumer Financial Protection Bureau at consumerfinance.gov.¹⁶ Neither guarantees a fast resolution, but both create a record that tends to get attention.

1
eCFR. 34 CFR 685.209 – Income-Driven Repayment Plans
2
Federal Student Aid. IDR Court Actions
3
Federal Student Aid Partners. Income Contingent Repayment Plan Options
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eCFR. 34 CFR 685.209 Income-Driven Repayment Plans
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Federal Student Aid. What to Know About Federal Family Education Loan (FFEL) Program Loans
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Federal Student Aid. Top FAQs About Income-Driven Repayment Plans
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Consumer Financial Protection Bureau. Options for Repaying Your Federal and Private Student Loans
8
ASPE. 2026 Poverty Guidelines – 48 Contiguous States
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Federal Student Aid. Income-Driven Repayment (IDR) Plan Request
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eCFR. 34 CFR 685.209 – Income-Driven Repayment Plans – Section: Application and Annual Recertification Procedures
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Federal Student Aid. 4 Things to Know About Marriage and Student Loan Debt
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Consumer Financial Protection Bureau. Trying to Enroll in an Income-Driven Repayment Plan? Avoid #ApplicationAbyss With Our Student Loan Tips and Resources
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Federal Student Aid. What Is an Income-Driven Repayment (IDR) Plan Recertification Date
14
Consumer Financial Protection Bureau. Student Loan Forgiveness
15
NASFAA. Welcome to 2026: Some Student Loan Forgiveness Is Now Taxable
16
Federal Student Aid. Ombudsman Self Resolution Checklist