How student-loan income-driven plans changed this year

Income-driven repayment ties the monthly bill to your earnings and household size. The plan names and the percentage of discretionary income have shifted again, so a payment that was affordable last year may be calculated on a new formula now.

Recertify on time. Missing the deadline can bounce you to the standard 10-year payment and capitalize unpaid interest. Set a calendar reminder a month before the date on your servicer portal, and keep a PDF of the confirmation.

Public service and teacher forgiveness still require a qualifying employer and the right plan. Switching plans to lower the payment can reset progress if the new plan does not count. Ask the servicer — in writing — whether the months you already have will transfer.

If your income dropped, file a new estimate before you miss a payment. Most plans let you update income mid-year. Forbearance pauses the bill but usually lets interest grow, which is more expensive than a lower income-driven payment.