Income-driven repayment plans cap student loan payments at a percentage of your discretionary income—the amount remaining after you deduct taxes, other mandatory charges, and expenditure on necessary items. An income-driven repayment plan allows you to make payments based on your earnings for 20 to 25 years, depending on your plan. At the end of your required payment period, as long as you’ve fulfilled all of the requirements of your program, any remaining balance will be forgiven.