I am not sure why but people really think there is a “gotcha” tied to the Income Driven Repayment plans. This is especially true when you a borrower that their payment will be $0.00.
This is designed to help borrower’s who are struggling to make payments stay in repayment. It also will act like a deferment does for the first 3 years as the government pays any interest your payment does not cover for subsidized loans.
Most importantly this helps a borrower not using forbearance or deferment time unnecessarily. For example if a borrower is unemployed instead of jumping to an Unemployment Deferment or Student Loan Debt Burden Forbearance, you can save your time on both of these by going with an Income Driven plan. In fact you don’t have to have an income to qualify for an Income Plan as having no income will automatically qualify you for a $0.00 payment for 12 payments. Do remember though if you are filing your taxes jointly that you must also include your spouse’s income into the equations.
The lesson in this is to consider all your options before you jump straight to a forbearance or deferment. Even if you don’t qualify for a $0.00 payment you may find something that is extremely affordable and will help you find a much more long term solution.