your friend tells you after doing all their research they’ve chosen the graduated repayment plan. what assumption are they making about their future income?

When your friend chooses the graduated repayment plan, they are making the key assumption that their future income will increase steadily over time. This plan starts with lower monthly payments that increase every two years, reflecting an expectation of regular income growth throughout their career. They also assume stable employment to support managing these increasing payments as their earnings rise

. In summary, the main assumption is:

• Increasing Income Over Time: They expect their earnings to grow steadily, enabling them to handle progressively higher loan payments as time goes on