Why Student Loan Income-Driven Repayment Plans Cancel Debt After 20 Years

In this episode, Lucas and Luna explain the mechanics of income-driven repayment plans for federal student loans, including how payments are capped at 10-20% of discretionary income and how any remaining balance is forgiven after 20 or 25 years. They walk through a specific example of a borrower with $45,000 in loans earning $38,000 annually, showing how the math works, what recertification errors can cost, and why the tax bomb on forgiven amounts matters. The episode also covers recent changes to the Public Service Loan Forgiveness program and common pitfalls like missing annual recertification deadlines. A concise guide for anyone considering IDR as a long-term strategy. #StudentLoans #IncomeDrivenRepayment #LoanForgiveness #IDR #FederalStudentAid #PublicServiceLoanForgiveness #PSLF #TaxBomb #DiscretionaryIncome #Recertification #StudentDebt #LoanRepayment #Finance #PersonalFinance #DebtPayoff #FexingoBusiness #BusinessPodcast #HigherEducation Keep every episode free: buymeacoffee.com/fexingo