JANET is a federal loan repayment plan, not a single monthly payment
JANET does not refer to one fixed monthly payment amount. Instead, JANET is the acronym for the federal student loan repayment plan called the Revised Pay As You Earn (REPAYE) plan, which calculates your monthly payment based on your income and family size rather than a set dollar figure. The Department of Education uses JANET as shorthand in some internal systems and older documentation, though the plan is now officially called REPAYE.
Your actual monthly payment under this plan depends entirely on your discretionary income — the difference between your adjusted gross income and 150 percent of the federal poverty line for your family size. The Department of Education recalculates this each year based on your tax return, so your payment can change annually, sometimes dropping to zero if your income falls below the threshold.
If you have federal student loans and are looking for a payment plan that adjusts to your income rather than a fixed amount, REPAYE (the plan JANET refers to) is one option among several income-driven plans. Understanding how your payment gets calculated and what happens if your income changes is essential before you commit to this repayment path.
Key Takeaways
- JANET is an older term for the REPAYE income-driven repayment plan, which calculates your monthly payment as a percentage of your discretionary income rather than a fixed dollar amount.
- Your monthly payment under REPAYE is typically 10 percent of your discretionary income, recalculated each year based on your most recent tax return.
- If your income drops below 150 percent of the federal poverty line for your family size, your payment may be zero, but interest still accrues on unsubsidized loans.
- REPAYE offers loan forgiveness after 20 to 25 years of may have access to payments, though forgiven amounts may be taxable as income in the year of forgiveness.
- You must recertify your income annually to stay in the plan, and missing recertification can result in your payment jumping to a standard 10-year repayment amount.
How REPAYE calculates your monthly payment
REPAYE takes your adjusted gross income from your most recent tax return, subtracts 150 percent of the federal poverty line for your household size, and multiplies the result by 10 percent. That product is your monthly payment. The poverty line changes each year, so the Department of Education updates the calculation annually.
For example, if you are single, the 2024 poverty line is approximately $14,580. At 150 percent, that threshold is roughly $21,870. If your adjusted gross income is $40,000, your discretionary income is $18,130. Ten percent of that is $1,813 annually, or about $151 per month. If your income is $25,000, your discretionary income is $3,130, making your monthly payment roughly $26.
The Department of Education uses the income information you provide when you first enroll, but you must submit updated income documentation each year — usually your tax return or a signed statement if you have not filed yet. If you do not recertify, the plan automatically converts you to the Standard Repayment Plan, which typically requires payment over 10 years regardless of income.
What happens when your income changes
If your income drops during the year, you cannot request a payment adjustment until your next annual recertification. However, if you experience a significant income loss — job loss, reduced hours, or a major life event — you can request an out-of-cycle recertification. The Department of Education will ask for documentation of the change, such as a termination letter or recent pay stubs showing reduced income.
If your income rises, your payment rises proportionally. There is no cap on how high your REPAYE payment can go, so in high-income years you may pay substantially more than borrowers on fixed-payment plans. Some borrowers switch to a different income-driven plan if their income increases significantly, though each plan has different rules about payment caps and forgiveness timelines.
If your income falls to zero or below the poverty threshold, your payment becomes zero. You still must recertify annually to maintain this status. During months when your payment is zero, interest continues to accrue on unsubsidized loans, meaning your balance grows even though you are not making payments.
Interest accrual and loan forgiveness under REPAYE
REPAYE is the only income-driven plan that offers interest subsidy on subsidized loans during periods of financial hardship. If your payment does not cover the monthly interest accrual on your loans, the government pays the difference on subsidized loans for up to three years. After three years, unpaid interest capitalizes — it gets added to your principal balance.
On unsubsidized loans, interest accrues from day one and is not subsidized by the government under any income-driven plan. If your payment is zero or does not cover the interest, your balance grows. After 25 years of may have access to payments under REPAYE, any remaining balance is forgiven, though the forgiven amount is treated as taxable income in that year.
Forgiveness timelines vary by plan. REPAYE offers forgiveness after 25 years; other income-driven plans offer it after 20 to 25 years depending on the plan type and when you borrowed. If you are pursuing Public Service Loan Forgiveness (PSLF) through an employer, REPAYE payments count toward the 120-payment requirement, and forgiveness happens tax-free under that program.
How to enroll in REPAYE and recertify each year
You enroll in REPAYE through the Federal Student Aid website (studentaid.gov) or by contacting your loan servicer directly. You will need to provide your adjusted gross income, family size, and state of residence. The servicer uses this information to calculate your payment and set your recertification date, typically one year from enrollment.
Each year before your recertification date, you will receive a notice from your servicer asking you to update your income information. You can submit your most recent tax return, or if you have not filed yet, you can provide a signed statement of your expected income. The servicer then recalculates your payment based on the new information.
If you miss your recertification deadline, your plan defaults to Standard Repayment over 10 years. You can request recertification after the fact, but your payment will jump to the standard amount until the servicer processes your request. To avoid this, set a calendar reminder for your recertification date and submit your income information early.
REPAYE compared to other income-driven plans
The federal government offers four income-driven repayment plans: REPAYE, PAYE (Pay As You Earn), IBR (Income-Based Repayment), and ICR (Income-Contingent Repayment). Each calculates payments differently and offers different forgiveness timelines. REPAYE typically results in the lowest monthly payment because it uses 10 percent of discretionary income and the lowest poverty threshold (150 percent).
PAYE also uses 10 percent of discretionary income but applies a 200 percent poverty threshold, resulting in a higher payment than REPAYE for most borrowers. PAYE offers forgiveness after 20 years instead of 25. IBR uses either 10 or 15 percent of discretionary income depending on when you borrowed, and ICR uses 20 percent of discretionary income with no poverty threshold adjustment.
If you have Parent PLUS loans, you cannot use income-driven plans directly. However, you can consolidate Parent PLUS loans into a Direct Consolidation Loan, which then becomes may be able to access for REPAYE. Consolidation resets your loan age, so your forgiveness timeline starts over, but it opens access to income-driven repayment if your current payment is unaffordable.
What to do if your REPAYE payment becomes unaffordable
If your payment increases beyond what you can afford, you have several options. First, request an out-of-cycle recertification if your income has genuinely dropped. Second, you can switch to a different income-driven plan if that plan would result in a lower payment. Third, you can request a temporary forbearance or deferment, though interest continues to accrue during these periods.
If you are struggling with federal student loan debt broadly, contact your loan servicer about income-driven repayment options before missing a payment. Missing payments damages your credit and can trigger default, which has serious consequences including wage garnishment and loss of federal tax refunds. Servicers are required to discuss repayment options with you if you contact them before you fall behind.
Some borrowers pursue Public Service Loan Forgiveness if they work for a government agency or nonprofit employer. Under PSLF, you make 120 may have access to payments on an income-driven plan (including REPAYE) and the remaining balance is forgiven tax-free. This path requires careful tracking of your employment and payment history, so document each may have access to payment with your servicer.
Frequently Asked Questions
What is the difference between JANET and REPAYE?
JANET is an older acronym used in some federal systems to refer to the REPAYE plan. They are the same thing — REPAYE is the current official name. If you see JANET in old loan documents or correspondence, it refers to the Revised Pay As You Earn income-driven repayment plan.
Can my REPAYE payment be zero?
Yes. If your discretionary income falls below zero — meaning your income is below 150 percent of the federal poverty line for your household — your payment is zero. You must still recertify annually to maintain this status. Interest continues to accrue on unsubsidized loans even when your payment is zero.
What happens if I do not recertify my income?
If you miss your annual recertification deadline, your plan converts to Standard Repayment over 10 years, and your payment jumps to whatever the standard amount is for your loan balance. You can request recertification after the fact, but your payment stays at the standard amount until the servicer processes your request, which can take weeks.
Is the forgiven amount under REPAYE taxable?
Yes. After 25 years of may have access to payments, any remaining balance is forgiven, but the forgiven amount is treated as taxable income in the year of forgiveness. You may owe federal income tax on that amount. Public Service Loan Forgiveness is an exception — forgiveness under PSLF is not taxable.
Can I switch from REPAYE to a different plan?
Yes. You can change income-driven plans at any time by contacting your servicer. However, switching plans resets your payment calculation and may change your forgiveness timeline. Compare the payment and forgiveness terms of each plan before switching to make sure the new plan actually benefits you.