Navigating the complexities of student loan repayment can feel overwhelming, especially when understanding how discretionary income is calculated. This crucial figure determines your monthly payment under income-driven repayment (IDR) plans, significantly impacting your financial well-being for years to come. Understanding the nuances of this calculation empowers you to make informed decisions about your repayment strategy and potentially lower your monthly burden. This guide provides a clear and comprehensive explanation of how discretionary income is calculated for student loans. We’ll explore the definitions of gross income versus discretionary income, detail allowable deductions, examine different IDR plans and their calculation methods, and Read More …
