What is the interest payment benefit under IBR?
If your monthly IBR payment does not cover the monthly interest that accrues on your Federal Subsidized or Federal Direct Subsidized Loans, the government will pay your unpaid interest on those loans for up to three consecutive years from when you first enter IBR repayment. After three years, and for all other types of Federal loans, the interest that accrues and is unpaid will be capitalized, i.e., added to the loan principal upon which future interest is calculated, when you are no longer eligible for IBR.
