🏫 College Advising

Which feature is a primary benefit of federal Income-Driven Repayment (IDR) plans for student loan borrowers?

A They convert all federal loans into grants after 10 years.
B They cap monthly payments based on a percentage of the borrower's discretionary income.
C They offer fixed monthly payments regardless of income.
D They automatically forgive all remaining loan balances after 60 payments.

✓ Correct Answer: Option B

IDR plans are designed to make loan repayment more manageable by setting monthly payments based on the borrower's income and family size, typically capping them at 10-20% of discretionary income.

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