The federal student loan wiki.
Plain-English explainers for every plan, program, and key term — from SAVE and PSLF to discretionary income and the NSLDS. Updated regularly. Written by the same people who run our consultations.
25 entries · last updated 2026-05-01
Repayment plans
The federal repayment plans you can choose between, what makes each one different, and who they fit.
SAVE Plan (Saving on a Valuable Education)
The newest income-driven repayment plan, with the most generous formula for many undergraduate-only borrowers — but currently subject to ongoing federal litigation.
ReadPAYE Plan (Pay As You Earn)
An income-driven plan that caps payments at 10% of discretionary income — and at the Standard 10-year payment. Forgives the balance after 20 years.
ReadIBR Plan (Income-Based Repayment)
The longest-standing income-driven repayment plan. 10% of discretionary income for newer borrowers, 15% for older borrowers, with 20- or 25-year forgiveness.
ReadICR Plan (Income-Contingent Repayment)
The oldest income-driven repayment plan and the only one currently available to Parent PLUS borrowers — usually after consolidation.
ReadStandard 10-Year Repayment Plan
The default federal repayment plan. Equal fixed payments over 10 years. Pays the loan off entirely — no forgiveness.
ReadIncome-Driven Repayment (IDR)
The umbrella term for federal repayment plans that tie your monthly payment to your income and family size. Currently includes SAVE, PAYE, IBR, and ICR.
ReadForgiveness & discharge
Federal programs that forgive or discharge your loans — who qualifies, and how the process actually works.
Public Service Loan Forgiveness (PSLF)
Federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments while working full-time for a qualifying public-service employer.
ReadBorrower's Defense to Repayment
Federal program that can discharge your entire federal loan balance — and refund payments you've already made — if your school misled you about something material.
ReadTotal and Permanent Disability (TPD) Discharge
Federal program that discharges your federal student loans entirely if you become totally and permanently disabled. Three qualifying paths: VA, SSA, or a physician.
ReadTeacher Loan Forgiveness
Federal program that forgives up to $17,500 of your Direct or Stafford loans after five consecutive years teaching in a low-income school. Separate from PSLF.
ReadClosed School Discharge
Federal program that discharges your federal student loans if your school closed while you were enrolled — or shortly after you withdrew.
ReadPSLF Buyback
A newer process that lets you 'buy back' qualifying PSLF months for periods of forbearance or deferment that didn't originally count.
ReadConcepts to understand
The mechanics behind your federal loans — discretionary income, NSLDS, capitalized interest, and more.
Discretionary Income
The portion of your income above a certain multiple of the federal poverty line. The base figure used to calculate every income-driven repayment plan.
ReadFederal Poverty Line
Annual income thresholds published by the U.S. Department of Health and Human Services. Used in IDR formulas to set the floor for what counts as 'discretionary' income.
ReadNSLDS (National Student Loan Data System)
The federal government's central database of all federal student aid disbursements. The single source of truth for what you owe, to whom.
ReadCapitalized Interest
When unpaid interest is added to your loan's principal balance. From that point on, you're paying interest on the interest.
ReadTypes of loans
The differences between Direct, Subsidized, Unsubsidized, PLUS, and private loans — and why those differences matter.
Direct Loans
Federal student loans issued directly by the U.S. Department of Education. The only loan type fully eligible for PSLF and every modern IDR plan.
ReadSubsidized vs. Unsubsidized Loans
The main difference between the two most common federal undergraduate loans. Subsidized loans don't accrue interest while you're in school; Unsubsidized loans do.
ReadFederal vs. Private Student Loans
The single most important distinction in student lending. Federal loans get IDR, PSLF, and discharge programs. Private loans don't.
ReadParent PLUS Loans
Federal loans taken out by a parent to pay for a dependent undergraduate's education. Higher interest rates than most other federal loans and limited repayment options.
ReadProcess & paperwork
What forbearance, deferment, consolidation, and re-certification actually do to your loans.
Federal Direct Loan Consolidation
Combining one or more federal loans into a single new Direct Consolidation Loan. The standard way to make non-Direct loans eligible for PSLF and modern IDR plans.
ReadForbearance vs. Deferment
Two ways to temporarily pause federal student loan payments. The difference: who pays the interest while payments are paused.
ReadIDR Re-Certification (Annual)
The yearly process of updating your income and family size to keep your IDR payment accurate. Miss it and your servicer can default you back to the Standard Plan.
ReadDefault & Loan Rehabilitation
What happens if your federal loans go into default, and the two main paths back to good standing: rehabilitation and consolidation.
ReadRefinancing Federal Student Loans
Refinancing replaces your federal loans with a new private loan at a (hopefully) lower rate. Often a mistake — you give up every federal benefit forever.
ReadReading the wiki is a start. We do the rest.
Book a free 30-minute consultation. We'll pull your federal loan record, model every program from this wiki against your actual numbers, and tell you the next step.