discretionary income

noun

: income that is left after paying for things that are essential, such as food and housing
She has enough discretionary income to pay for a nice vacation each year.

Examples of discretionary income in a Sentence

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These adjustments, based on the amount of discretionary income, have the potential to lower a loan repayment to $0 a month, according to the FAFSA website. Nathan Goldman, Forbes.com, 2 July 2025 The Repayment Assistance Plan will calculate monthly payments as between 1% and 10% of a borrower’s discretionary income, down from the current offerings that set payments at 10%, 15% or 20% of a borrower’s income. Kamaron McNair, CNBC, 2 July 2025 For loans disbursed on or after July 1, 2014, borrowers are required to pay 10% of their discretionary income, with any remaining balance forgiven after 20 years. Marley Malenfant, Austin American Statesman, 30 June 2025 Without structured financial planning, revenge saving momentum may taper off, particularly as economic pressures (e.g., inflation) erode discretionary income. Ron Shevlin, Forbes.com, 1 July 2025 See All Example Sentences for discretionary income

Cite this Entry

“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 19 Jul. 2025.

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