🏫 College Advising

An advantage of Income-Driven Repayment (IDR) plans for federal student loans is that they can:

A Immediately forgive the principal balance of the loan.
B Eliminate the need to pay interest on the loan.
C Adjust monthly payments based on a borrower's income and family size.
D Convert federal student loans into private student loans.

✓ Correct Answer: Option C

IDR plans cap monthly federal student loan payments at an affordable percentage of a borrower's discretionary income, making repayment more manageable, especially for those with lower incomes.

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