When entering into an income-based repayment plan option, a student must contact their loan servicer to select the repayment plan option.
The monthly loan payment under income-driven repayment programs is determined by the borrower's income rather than the total amount of debt. If your entire student loan debt exceeds your annual income, doing so may make the loan payments more manageable.
After the COVID-19 payment halt expires, borrowers who are having trouble repaying their student loans may find that income-driven repayment plans are a reasonable alternative because of the lower loan installments. The loan cancellation may be taxed even though the remaining amount is forgiven after 20 or 25 years of repayment.
To learn more about repayment plan options, follow the below link:
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