 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: Should You Get on an Income-Driven Repayment Plan?\n--------------------------------------------------\nIf you have federal student loans, you don't have to worry about making any payments until the end of September 2021. But if you anticipate the COVID-19 pandemic will have a lasting impact on your financial situation, it may make sense to apply for an income-driven repayment plan.\nIncome-driven repayment plans reduce your monthly payment to a percentage—usually 10% to 20%, depending on the plan—of your discretionary income. They also extend your repayment term to 20 or 25 years. Once you've completed your repayment plan (which includes the suspended payments for the next handful of months), the remaining balance will be forgiven.\nBefore you apply for an income-driven repayment plan, it's important to note that while your payment can be lower right now, especially if you've lost some income, you have to recertify your income every year. That means that your payments can go up—and with some plans, they can even exceed your current monthly payment amount.\nAlso, while these plans will reduce your monthly payment, you'll pay more in interest over the life of your loans, and you'll be indebted for at least twice as long since 10 years is the normal federal student loan term. If the idea of having your remaining balance forgiven after 20 or 25 years is appealing, know that that amount will be considered taxable income, which can result in a big tax bill.\nSo again, take your time to consider your options. Because you don't have to worry about payments for a while, getting on an income-driven repayment plan only makes sense if it's the right move for the long run to prevent default. END