A more thorough explanation:

An income-based plan is a type of repayment plan for student loans that is based on the borrower's income. This plan is available for those who have a low income or are experiencing financial hardship. The monthly payments are calculated based on the borrower's income and family size, and can be adjusted annually.

For example, if a borrower has a low income and a family to support, they may qualify for an income-based plan that allows them to make lower monthly payments. The amount of the monthly payment will be based on their income and family size, and may be adjusted each year.

Another example is if a borrower is experiencing financial hardship, such as a job loss or medical emergency, they may be eligible for an income-based plan that allows them to temporarily reduce or suspend their monthly payments until they are able to get back on their feet financially.