Income-based repayment plans are based on a percentage of discretionary income,not the amount owed,and provide a 25-year term of payments before loan forgiveness.

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Income-based repayment plans calculate the monthly payment based on a percentage of the borrower's discretionary income, not the total amount owed. These plans typically have a 20 or 25-year term of payments before loan forgiveness.

Income-Based Repayment Plans Are Based on a Percentage of Discretionary