Academia Support Center

Education Your Way

Fitting your payments to your budget

When looking for income-driven repayment plans you’ll often see the term “discretionary income” in the calculations of what you must pay, but just what does it mean? Discretionary income is the amount remaining after expenses such as rent, cost of dependents, and other necessities. An important factor to note is that if your salary rises sharply during your income-based repayment plan period, you could end up paying more than if you never went onto a plan such as REPAYE, or IBR.

Certain programs have different stipulations on what is considered a necessity, and coming to grips with their specific requirements is often the most difficult part.

See our section on Income-Based Repayment Plans for more detail.

Want to know more? Call (855) 778-8849