To meet Luca's desire for federal loan payments under $200 for the first few years, an Income-Driven Repayment (IDR) plan would likely be the best option. IDR plans adjust the monthly loan payments based on the borrower's income and family size, making them particularly suitable for individuals who may have difficulty affording standard loan payments.
Among the IDR plans, the Revised Pay As You Earn (REPAYE) plan often offers the lowest initial payments because it caps payments at 10% of discretionary income. Additionally, REPAYE provides interest subsidies on subsidized loans for the first three years if the monthly payment does not cover the accruing interest.
Therefore, Luca could consider enrolling in the REPAYE plan to keep federal loan payments under $200 for the first few years, particularly if they anticipate low income or financial hardship during that time. However, it's essential to review the specific terms and eligibility requirements of each IDR plan and to consider the long-term implications, such as potential forgiveness options and total repayment amounts, before making a decision.