Payments under the PAYE Plan are 10% of discretionary income but will never be more than the 10-year standard repayment amount.
[2] The IBR and PAYE Plans require that borrowers demonstrate a "need" to make income-driven payments.
[2] Income-contingent repayment of student loans has been formally proposed in the United States, in various forms, since 1971.
[6] The first iteration, Income-Contingent Repayment (ICR) plan, was signed in 1993 under President Bill Clinton,[7] and was introduced in July 1994.
[8] The general trend in plans since have offered more favorable terms for borrowers (see Table 1-1 at: https://www.cbo.gov/publication/56277#_idTextAnchor008).
[10] Using constant 2025 dollars and Federal Poverty Level figures, a single person with a $50,000 adjusted gross income (AGI) would generally pay: The U.S. Department of Education Office of Inspector General calculated that the portion of total Direct Loan volume being repaid through IDR plans has increased 625 percent from the FY 2011 loan cohort ($7.1 billion) to the FY 2015 loan cohort ($51.5 billion).
For IDR plans, the Federal government is expected to lend more money than borrowers repay.
From the FY 2011 through FY 2015 loan cohorts, the total positive subsidy cost (net cash outflow) for student loans being repaid through IDR plans has increased 748%, from $1.4 billion to $11.5 billion.