The goal of an income-driven repayment plan is to make student loan payments more affordable until your Income.increases through a better- paying job or a raise. What happens if your Income does not significantly Increase while on this plan? Choose 1 answer: A You automatically switch to a standard repayment plan. B Your loan balance may be forgiven after 20 or 25 years of qualifying payments. C Your payments remain the same for the entire term, regardless of income changes. D ) You have to pay the loan off in full with additional penalties.

## Step 1<br />The problem is about understanding the implications of an income-driven repayment plan for student loans when the borrower's income does not significantly increase. <br /><br />## Step 2<br />An income-driven repayment plan is a type of student loan repayment plan that bases the monthly payment on the borrower's income and family size. The goal of this plan is to make the payments affordable for the borrower.<br /><br />## Step 3<br />The options provided are:<br />A. The borrower automatically switches to a standard repayment plan.<br />B. The loan balance may be forgiven after 20 or 25 years of qualifying payments.<br />C. The payments remain the same for the entire term, regardless of income changes.<br />D. The borrower has to pay the loan off in full with additional penalties.<br /><br />## Step 4<br />Option A is incorrect because the borrower does not automatically switch to a standard repayment plan if their income does not increase.<br /><br />## Step 5<br />Option C is also incorrect because the payments do not remain the same for the entire term, regardless of income changes.<br /><br />## Step 6<br />Option D is incorrect because the borrower does not have to pay the loan off in full with additional penalties if their income does not increase.<br /><br />## Step 7<br />Option B is correct. If the borrower's income does not significantly increase, they may be eligible for loan forgiveness after 20 or 25 years of qualifying payments. This is a feature of income-driven repayment plans, which aim to make the payments affordable for the borrower.