Income Based Repayment Plan

The government has started a plan called IBR, or Income Based Repayment Plan. This affects all students currently attending or finished with school.

The Income Based Repayment Plan lets a student determine the monthly payment of their federal student loans based on your income and family size. All Stafford, Grad PLUS and consolidation loans made under the Direct Loan or FFEL program are eligible, except loans currently in default, parent PLUS loans, or consolidation loans that repaid a parent PLUS loan. The loans may be new or old and for any type of education (undergraduate, graduate, professional, and job training included).

IBR benefits students and graduates with a loan that is high for their income and family size. Your state of residence also affects your IBR rate. Use the IBR calculator to determine your monthly payment.

The IBR lets you pay as you earn; the amount is less than if you were on a 10-year repayment plan. If your payment does not cover your interest, the government will pay your interest for the first three years. Also, if you have not finished your loans after twenty-five years of participation with IBR, your remaining balance is canceled.