A recent graduate is struggling to make their monthly federal student loan payments due to a low starting salary. Which type of repayment plan would generally offer the lowest initial monthly payment by adjusting based on the borrower's income and family size?
✓ Correct Answer: Option C
Income-Driven Repayment (IDR) plans calculate monthly payments based on a percentage of the borrower's discretionary income and family size, making them the most flexible for those with low incomes.