What is income-based repayment?
Income-based repayment (IBR) is a new repayment plan available to borrowers in both the FFEL and Direct Loan Programs. Borrowers with Stafford (subsidized and unsubsidized) and graduate PLUS loans are eligible regardless of the disbursement dates of their loans. Borrowers with a “partial financial hardship” may elect to have the aggregate monthly payment for all such loans not exceed 15% of the result obtained by calculating on at least an annual basis the AGI minus 150% of the poverty line for the family size. Parent PLUS loans and consolidation loans that contain parent PLUS loans are not eligible for IBR.
Related Questions
- Can you switch between options? Choose Extended at one time then change it to Income-Based Repayment (IBR) later?
- What’s the difference between Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR)?
- How do I participate in the new income-based repayment plan (known as IBR) for federal student loans?
