What are the options for income-driven repayment plans?

Great Lakes Higher Education Corporation offers various income-driven repayment plans that can help borrowers manage their student loan payments based on income and family size. The primary options include the Income-Based Repayment Plan, the Pay As You Earn Plan, and the Revised Pay As You Earn Plan. The Income-Based Repayment Plan generally caps monthly payments at a percentage of the borrower's discretionary income, and forgiveness may be available after a specified number of qualifying payments, typically twenty to twenty-five years. The Pay As You Earn Plan also bases payments on income, usually set at ten percent of discretionary income, with forgiveness available after twenty years of qualifying payments. This plan has specific eligibility criteria, including the borrower having a financial hardship and being a new borrower after October 1, 2007. The Revised Pay As You Earn Plan, similar to Pay As You Earn, caps payments at ten percent of discretionary income but does not require the borrower to be a new borrower. Forgiveness can be achieved after twenty years of payments for undergraduate loans or twenty-five years for graduate loans. In addition to these, the Income-Contingent Repayment Plan is another option that adjusts monthly payments based on income and family size, with forgiveness after twenty-five years. To explore these options further, including eligibility requirements and application processes, it is advisable to visit the Great Lakes Higher Education Corporation website for the most comprehensive and accurate information.