Income-Contingent Repayment

Lending & Loans, Student Loans
Published Date: July 10, 2025
Last Modified: 1 month ago

What is a Direct Consolidation Loan?

A Direct Consolidation Loan combines multiple federal education loans into one loan. The result is a single monthly payment, potentially simplifying repayment.

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With a Direct Consolidation Loan, you’ll have a single loan servicer and a fixed interest rate based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of a percent. While consolidation simplifies repayment, it may also result in paying more interest over the life of the loan. Consider your options carefully to determine if consolidation is right for you.

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Lending & Loans, Student Loans

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Pay As You Earn (PAYE)

The Pay As You Earn (PAYE) plan is a federal income-driven repayment option that sets your monthly student loan payment at 10% of your discretionary income. While now closed to new applicants, borrowers currently enrolled can continue to benefit from its 20-year loan forgiveness timeline.

Income-Based Repayment

Income-Based Repayment (IBR) is a federal plan that makes student loan debt more manageable by capping monthly payments at a percentage of your income. It is designed for borrowers experiencing a partial financial hardship relative to their federal student loan debt.

Revised Pay As You Earn (REPAYE)

Income-driven repayment (IDR) plans can make your federal student loan payments more manageable by basing them on your income and family size.

One Application. 20+ Loan Offers.
No Credit Hit

Compare real rates from top lenders - in under 2 minutes