<div class="edu-card" data-widget-id="1" data-cy="edu-card"> <div class="edu-card-banner" data-cy="edu-card-banner"> Advertisement </div> <div class="edu-card-container" data-cy="edu-card-container"> <div class="edu-card-content" data-cy="edu-card-content"> <div class="edu-card-title" data-cy="edu-card-title"> <h1 class="edu-card-title-heading" data-cy="edu-card-title-heading"> UNC Kenan-Flagler’s top-ranked online MBA </h1> <p class="edu-card-title-subheading" data-cy="edu-card-title-subheading"> STEM-designated. Tar Heel ROI. No compromises. </p> </div> <div class="edu-card-content-description" data-cy="edu-card-content-description"> <div class="edu-card-content-description-content"> <p>UNC Kenan-Flagler’s top-ranked online MBA is designed for experienced professionals looking to take their career to the next level. Students have access to lifelong career benefits and a global network of 51,000+ business school alumni. Earn your MBA online in as few as 18 months or up to three years. MBA Fellowships Available.</p> </div> <span class="edu-card-content-description-readmore"> <input type="checkbox" id="edu-card-content-description-readmore-input-1" class="edu-card-content-description-readmore-input" /> <label for="edu-card-content-description-readmore-input-1" class="edu-card-content-description-readmore-label"> <span class="edu-card-content-description-readmore-label-arrow"></span> </label> </span> </div> <a class="edu-card-content-button" target="_blank" href="https://onlinemba.unc.edu/requestinfo/index/">Learn More</a> <span class="edu-card-content-caption"> </span> </div> <div class="edu-card-action" data-cy="edu-card-action"> <picture class="edu-card-picture" data-cy="edu-card-picture"> <img src="https://fortune.com/img-assets/wp-content/uploads/2024/07/UNC2UadCURRENT.png?w=250&amp;h=165" class="" alt=""> <span class="edu-card-picture-label"> </span> </picture> <div class="edu-card-action-cta" data-cy="edu-card-action-cta"> <a class="edu-card-action-button" target="_blank" href="https://onlinemba.unc.edu/requestinfo/index/">Learn More</a> <span class="edu-card-action-caption"> </span> </div> </div> </div></div><script> function checkWidgets() { document.querySelectorAll('.edu-card-content-description-content').forEach((content) => { const readMoreBtn = content.nextElementSibling; if (!readMoreBtn) { return; } if (content && content.clientHeight === content.scrollHeight) { readMoreBtn.style.display = 'none'; } else { delete readMoreBtn.style.removeProperty('display'); } }) } window.removeEventListener('resize', checkWidgets); window.addEventListener('resize', checkWidgets); checkWidgets();</script>

<div class="edu-card" data-widget-id="71" data-cy="edu-card"> <div class="edu-card-banner" data-cy="edu-card-banner"> Advertisement </div> <div class="edu-card-container" data-cy="edu-card-container"> <div class="edu-card-content" data-cy="edu-card-content"> <div class="edu-card-title" data-cy="edu-card-title"> <h1 class="edu-card-title-heading" data-cy="edu-card-title-heading"> The Online MBA From Rice Business </h1> <p class="edu-card-title-subheading" data-cy="edu-card-title-subheading"> Rethink Your Approach to Business </p> </div> <div class="edu-card-content-description" data-cy="edu-card-content-description"> <div class="edu-card-content-description-content"> <p>GMAT waivers are available for the online MBA from Rice Business, ranked a Top-20 Online MBA by U.S. News & World Report. Ranked #1 in graduate entrepreneurship in the U.S. by the Princeton Review for 2024, aspiring entrepreneurs can earn their MBA in as few as 24 months.</p> </div> <span class="edu-card-content-description-readmore"> <input type="checkbox" id="edu-card-content-description-readmore-input-71" class="edu-card-content-description-readmore-input" /> <label for="edu-card-content-description-readmore-input-71" class="edu-card-content-description-readmore-label"> <span class="edu-card-content-description-readmore-label-arrow"></span> </label> </span> </div> <a class="edu-card-content-button" target="_blank" href="https://onlinebusiness.rice.edu/requestinfo/index/">Learn More</a> <span class="edu-card-content-caption"> </span> </div> <div class="edu-card-action" data-cy="edu-card-action"> <picture class="edu-card-picture" data-cy="edu-card-picture"> <img src="https://fortune.com/img-assets/wp-content/uploads/2024/07/Rice2UadCURRENT.png?w=250&amp;h=165" class="" alt=""> <span class="edu-card-picture-label"> </span> </picture> <div class="edu-card-action-cta" data-cy="edu-card-action-cta"> <a class="edu-card-action-button" target="_blank" href="https://onlinebusiness.rice.edu/requestinfo/index/">Learn More</a> <span class="edu-card-action-caption"> </span> </div> </div> </div></div><script> function checkWidgets() { document.querySelectorAll('.edu-card-content-description-content').forEach((content) => { const readMoreBtn = content.nextElementSibling; if (!readMoreBtn) { return; } if (content && content.clientHeight === content.scrollHeight) { readMoreBtn.style.display = 'none'; } else { delete readMoreBtn.style.removeProperty('display'); } }) } window.removeEventListener('resize', checkWidgets); window.addEventListener('resize', checkWidgets); checkWidgets();</script>

<div class="edu-card" data-widget-id="2" data-cy="edu-card"> <div class="edu-card-banner" data-cy="edu-card-banner"> Advertisement </div> <div class="edu-card-container" data-cy="edu-card-container"> <div class="edu-card-content" data-cy="edu-card-content"> <div class="edu-card-title" data-cy="edu-card-title"> <h1 class="edu-card-title-heading" data-cy="edu-card-title-heading"> UNC Kenan-Flagler’s top-ranked online MBA </h1> <p class="edu-card-title-subheading" data-cy="edu-card-title-subheading"> STEM-designated. Tar Heel ROI. No compromises. </p> </div> <div class="edu-card-content-description" data-cy="edu-card-content-description"> <div class="edu-card-content-description-content"> <p>UNC Kenan-Flagler’s top-ranked online MBA is designed for experienced professionals looking to take their career to the next level. Students have access to lifelong career benefits and a global network of 51,000+ business school alumni. Earn your MBA online in as few as 18 months or up to three years. MBA Fellowships Available.</p> </div> <span class="edu-card-content-description-readmore"> <input type="checkbox" id="edu-card-content-description-readmore-input-2" class="edu-card-content-description-readmore-input" /> <label for="edu-card-content-description-readmore-input-2" class="edu-card-content-description-readmore-label"> <span class="edu-card-content-description-readmore-label-arrow"></span> </label> </span> </div> <a class="edu-card-content-button" target="_blank" href="https://onlinemba.unc.edu/requestinfo/index/">Visit Website</a> <span class="edu-card-content-caption"> </span> </div> <div class="edu-card-action" data-cy="edu-card-action"> <picture class="edu-card-picture" data-cy="edu-card-picture"> <img src="https://fortune.com/img-assets/wp-content/uploads/2024/07/UNC2UadCURRENT.png?w=250&amp;h=165" class="" alt=""> <span class="edu-card-picture-label"> </span> </picture> <div class="edu-card-action-cta" data-cy="edu-card-action-cta"> <a class="edu-card-action-button" target="_blank" href="https://onlinemba.unc.edu/requestinfo/index/">Visit Website</a> <span class="edu-card-action-caption"> </span> </div> </div> </div></div><script> function checkWidgets() { document.querySelectorAll('.edu-card-content-description-content').forEach((content) => { const readMoreBtn = content.nextElementSibling; if (!readMoreBtn) { return; } if (content && content.clientHeight === content.scrollHeight) { readMoreBtn.style.display = 'none'; } else { delete readMoreBtn.style.removeProperty('display'); } }) } window.removeEventListener('resize', checkWidgets); window.addEventListener('resize', checkWidgets); checkWidgets();</script>

cat_Other

Low Intent

ptype_Explainer

ptype_News

Sydney Lake

<p>As of late July, there’s still no official word on whether the freeze on student loan repayments will be extended past Sept. 30, 2021. Many borrowers and federal student-loan servicers <a href="https://fortune.com/education/business/articles/2021/07/15/federal-student-loan-servicers-arent-ready-for-payments-to-resume-in-the-fall/">are unprepared</a> for payments to resume in the fall, but there are still ways to feel more ready—one of them being the income-driven repayment (IDR) plan.</p><div class="paywall-selector"></div><div class="paywall">



<p>Income-driven repayment plans set a borrower’s student loan payment at an affordable amount based on income and family size. The Federal Student Aid office offers four different IDR options, which limit monthly dues to only 10% to 20% of a borrower’s income. Rates are established to help borrowers pay off their loans within a 20-year to 25-year period. </p>



<p>For those borrowers who experienced pay cuts or unemployment during the pandemic, switching to an IDR plan could help ease the burden of returning to regular payments, student loan experts say. That’s because payments are based on an individual’s most recent tax filings.</p>



<p>“There are some great planning opportunities here for people on income-driven repayment plans,” says Patti Hughes, principal of <a href="https://lakelifewealthadvisorygroup.com/">Lake Life Wealth Advisory Group</a>. Seeking an IDR plan “does make a lot of sense for people whose income has dropped during the pandemic to see if the payments would be lower considering the new income.”</p>



<h2 class="wp-block-heading" id="h-who-should-think-about-switching-to-an-idr-plan">Who should think about switching to an IDR plan?</h2>



<p>Under an IDR plan, borrowers must annually recertify their income and family size. People who found another job during the pandemic and are now earning more can hold out to recertify 20 months past their original due date. Doing so will allow borrowers to use their old tax return showing the lower income, resulting in lower payments. </p>



<p>While an IDR plan could be a good move for some borrowers, it may not be the smart choice for others. It makes sense for borrowers who are looking to lower their monthly payments, which would not necessarily be the case for those whose incomes rose during the pandemic. </p>



<p>“You may not qualify for some income-driven repayment plans that require a personal financial hardship,” Hughes reminds borrowers whose incomes rose during COVID-19.</p>



<p>IDR plans aren’t always a good fit for high-income earners, according to student loan experts, and if you’ve defaulted on your loans, then it may not even be an option. </p>



<h2 class="wp-block-heading" id="h-what-are-the-idr-options">What are the IDR options?</h2>



<p>The Federal Student Aid office offers <a href="https://studentaid.gov/manage-loans/repayment/plans/income-driven">four IDR options</a> that require borrowers to relinquish a portion of their income each month. Under two of the four plans, a borrower generally pays 10% of their discretionary income (the second option restricts the amount to no more than the 10-year Standard Repayment Plan).</p>



<p>Another plan requires 10% or 15% of your income, depending on when you became a borrower. The fourth plan pulls 20% of a borrower’s discretionary income or what they’d pay on a repayment plan with a fixed payment during 12 years adjusted to income.</p>



<p>Democratic congressional leadership, which has been pushing for student debt cancellation and an extension on the repayment freeze, have cautioned against IDR plans, calling the enrollment process “complex and lengthy,” arguing there are too many options for borrowers.</p>



<p>The <a href="https://ticas.org/wp-content/uploads/2020/11/2021-Transition-Memo_TICAS.pdf">Institute for College Access &amp; Success in a late 2020 statement</a> suggested consolidating the IDR program by offering only one option to borrowers to “help more borrowers access affordable payments and avoid the devastating consequences of loan default.”</p>



<h2 class="wp-block-heading" id="h-are-additional-freeze-extensions-or-debt-cancellation-in-the-cards">Are additional freeze extensions or debt cancellation in the cards?</h2>



<p>Never say never. There have been a few recent indicators that debt cancellation or forgiveness could be a possibility for student loan borrowers. </p>



<p>Congressional leaders, including including Majority Leader Chuck Schumer, a Democrat from New York, and Sen. Elizabeth Warren, a Democrat from Massachusetts, are vocal supporters of an additional freeze extension as well as debt cancellation. </p>



<p>The politicians wrote to President Joe Biden in June 2021 asking him to extend the freeze through March 31, 2022, which <a href="https://www.shu.edu/profiles/robertkelchen.cfm">Robert Kelchen</a>, an associate professor and chair of the Department of Education Leadership, Management, and Policy at Seton Hall University, <a href="https://fortune.com/education/business/articles/2021/06/29/democrat-leaders-urge-biden-to-extend-student-loan-repayment-freeze-through-march-2022/">recently told <em>Fortune</em></a><em> </em>“seems to be about a 50-50 proposition.” </p>



<p>The Education Department also recently hired <a href="https://fortune.com/education/business/articles/2021/07/12/biden-administration-brings-on-a-big-supporter-for-student-loan-forgiveness/">hired student-debt cancellation advocate and Warren ally Toby Merrill</a> as a deputy general counsel in the department’s Office of the General Counsel. Her research was used to support Warren’s 2020 presidential campaign proposition to direct the secretary of education to cancel $50,000 of each borrower’s student debt. </p>



<p>Biden said during his campaign that he supported paying off $10,000 per borrower, but its funding was <a href="https://fortune.com/education/business/articles/2021/05/25/student-loan-cancellation-noticeably-absent-from-bidens-budget-proposal/">left out of his most recent budget proposal</a>. </p>



<p>“It doesn’t mean that all hope is lost,” Bruce McClary, senior vice president of communications for the National Foundation for Credit Counseling (NFCC) told <em>Fortune. </em>Student loan forgiveness could still crop up in future, he adds.</p>



<div class="wp-block-group pro-tip-box-widget"><div class="wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained">
<h3 class="wp-block-heading pro-tip-box-heading">Read more</h3>



<li>Many universities offer <a href="https://fortune.com/education/health/most-affordable-online-msn-nurse-practitioner-programs/">affordable online MSN nurse practitioner programs</a>.</li>
<li>Getting a masters degree doesn’t have to break the bank. Here’s our list of the <a href="https://fortune.com/education/information-technology/most-affordable-masters-in-data-science/">most affordable data science masters degree programs</a>.</li>
<li>Our list of <a href="https://fortune.com/education/information-technology/most-affordable-online-masters-in-cybersecurity/">affordable online masters in cybersecurity programs</a> can help you find the school that best fits your budget.</li>
<li>This directory of the <a href="https://fortune.com/education/business/most-affordable-online-mba-programs/">most affordable online MBA programs</a> is a great resource for those looking for more inexpensive options.</li>
<li>If you’re looking for an online Ed.D. program at a competitive price, check out our list of the <a href="https://fortune.com/education/leadership/most-affordable-online-doctorate-in-education-edd-programs/">most affordable online doctorate in education Ed.D. programs</a>.</li>
</div></div>
</div>

Income-driven repayment (IDR) plans are one way that many borrowers can prepare for student loan payments to resume in the fall.

Preparing to make student loan payments again? Consider an income-based option

F-Search

Education

Education Articles

Jasmine Suarez

Business

Student loan payments resume in the fall. Here's why you may want to look into Income-driven repayment (IDR) plans now.

Fortune earns a commission for purchases made from affiliate partners via some links on our site; other links are not affiliate partner links. <a href='/affiliate-disclosure/'>Click here</a> to read the full Fortune advertiser disclosure and how we earn commissions.

We have independently evaluated the products and services below. We may earn affiliate revenue from links in the content.

Fortune Editors

Fortune Education is designed to be your guide to navigating this new, rich and somewhat overwhelming world of education. Our team of experienced editors is committed to scouring the universe of online offerings in order to rank, rate, provide comparisons and recommend the right solutions for you and your career.

Fortune Education

Uncategorized

homepage

articles

Articles Hub

By Region

By State

By Cost

Career Hub

Health and Wellness

Tech

EDUCATION

EDUCATION ARTICLES

PREPARING TO MAKE STUDENT LOAN PAYMENTS AGAIN? CONSIDER AN INCOME-BASED OPTION

Preparing to make student loan payments again? Consider an income-based option | Fortune Education

Preston Fore

2024 real estate school review: AceableAgent

https://fortune.com/education/articles/real-estate-school-review-aceableagent/?itm_source=parsely-api

Rich Griset

10 free data analytics courses you can take online

https://fortune.com/education/articles/free-data-analytics-courses/?itm_source=parsely-api

Northwestern, Columbia, and UPenn have the best EMBA programs in the country. Here's why

https://fortune.com/education/articles/best-exec-mba-programs-news/?itm_source=parsely-api

Brit Morse

A law associate making $300,000 a year at Skadden Arps quit over the firm’s deal with Donald Trump

/article/rachel-cohen-making-300k-year-law-associate-skadden-arps-quit-protest-firms-deal-trump/

Get ready to pay more than $2,000 for a new iPhone: Experts say Trump’s 125% tariff on China is a ‘complete disaster for Apple’ akin to ‘Armageddon’

/2025/04/10/apple-iphone-16-price-complete-disaster-china-trump-tariffs/

It’s about to get a lot harder for job seekers as tariffs are set to make the hiring landscape even more daunting

/2025/04/07/trump-tariffs-labor-market-more-challenging-job-seekers-economists-say/

This company does peer performance reviews—And then lets everyone read each other’s evaluations

/2025/03/24/performance-review-process-company-allows-all-workers-read-garner-health-workplace-culture/

2024 health coach certification review: Catalyst Coaching Institute

/education/articles/health-coach-certification-review-catalyst-coaching-institute/

A guide to a nurse’s salary: Broken down by all 50 states and industry type

/education/careers/nurse-salary/

2024 health coach certification review: Institute for Integrative Nutrition

/education/articles/health-coach-certification-review-institute-for-integrative-nutrition/

10 high-paying public health jobs right now

/education/careers/public-health-jobs/

Jason Del Rey

Is eBay actually sexy again as the ecommerce old-timer’s stock surges to an all-time high?

/2025/07/31/ebay-earnings-live-sports-cards-trading-pokemon/

Erik German

Meet the CIA-backed venture fund behind Palantir, Anduril—and a spy tool that might be on your phone

/2025/07/29/in-q-tel-cia-venture-capital-palantir-anduril/

Dana Hull

Kiel Porter

Bloomberg

Tesla engineering VP Moravy says company in ‘big swing moment’

/2025/07/27/tesla-engineering-vp-lars-moravy-big-swing-moment-musk-robotaxi-optimus-semi/

Christiaan Hetzner

Volkswagen seeks audience with Trump, dangling more than $10 billion in U.S. investments in exchange for tariff exemptions

/2025/07/25/volkswagen-trump-tariffs-exemptions/

Whether you’ve just completed your undergraduate degree or you are a professional with years of experience, Fortune is here to guide you on the next step of your educational journey.

Preparing to make student loan payments again? Consider an income-based option

About the Contributors

Top Articles

2024 real estate school review: AceableAgent

10 free data analytics courses you can take online

Northwestern, Columbia, and UPenn have the best EMBA programs in the country. Here's why

UNC Kenan-Flagler’s top-ranked online MBA