Eligible Borrowers:
You must have a high debt relative to your income.
Monthly Payment:
Your monthly payments will be either 10 or 15 percent of discretionary income (depending on when you received your first loans), but never more than you would have paid under the 10-year Standard Repayment Plan.
Payments are recalculated each year and are based on your updated income and family size.
You must update your income and family size each year, even if they haven’t changed.
If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return.
Time Frame:
Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 or 25 years, depending on when you received your first loans.
You may have to pay income tax on any amount that is forgiven.
Eligible Loans:
- Direct Subsidized and Unsubsidized Loans
- Subsidized and Unsubsidized Federal Stafford Loans
- all PLUS Loans made to students
- Consolidation Loans (Direct or FFEL) that do not include PLUS loans (Direct or FFEL) made to parents
How to Apply
The quickest and easiest way to submit your request for IBR is online. You will need your FSA ID, personal information, spouse information (if applicable), and income information to complete the request.
If you are unable to complete the online request, you have the option to use the form instead.
Eligibility
IBR is available for both Direct and FFEL Loan borrowers, and eligible loan types include: Direct Subsidized/Unsubsidized, Subsidized/Unsubsidized Federal Stafford Loans, all PLUS loans made to students, and Consolidation Loans (Direct or FFEL) that do not include PLUS loans (Direct or FFEL) made to parents. Direct Parent PLUS loans, defaulted loans, and consolidation loans that repaid a Parent PLUS loan cannot be repaid under the IBR plan.
Note
The IBR is the only income-driven repayment plan where FFELP loans are eligible.
Monthly Payment Calculation
Your monthly payments will be based on your eligible federal student loan debt, family size, and your income. Your monthly payment amount will be capped at 10% or 15% of your discretionary income (depending on when you received your first loans). Your discretionary income is the difference between your Adjusted Gross Income (AGI) and 150% of the poverty line amount for your family size and state. The payment amount is valid for 12 months and you will be required to reapply each year by submitting a new Income-Driven Repayment Plan Request form that will provide us with your updated income and family size information if you wish to continue on the IBR plan. Your payment amount may change as your income or family size changes.
Note
If you are married, your spouse’s income or loan debt will be considered only if you file a joint tax return. If your spouse has eligible student loans, his or her loan debt may also be considered when calculating your monthly payment on IBR. If you believe that your AGI, as reported on your most recently filed federal income tax return, does not reasonably reflect your current income and your spouse’s current income (if applicable), you may provide alternative documentation of income and provide proof of your current income (as instructed in Section 5 of the Income-Driven Repayment Request form).
Loan Forgiveness
Under IBR, your remaining balance will be forgiven after 20 or 25 years, depending on when you received your first loans.
You may be eligible for loan forgiveness after 10 years if you are seeking Public Service Loan Forgiveness (PSLF).
Learn More About PSLFInterest Subsidy
If you have subsidized loans and your monthly payment amount under IBR is not sufficient to pay the amount of interest that accrues on a monthly basis, the federal government will subsidize 100% of the remaining interest that is due for the first three consecutive years.
Payment Estimate
Interested in what your payment amount would be on IBR? Use the Loan Simulator on StudentAid.gov. In addition to providing you with your estimated monthly payment amount on IBR, the estimator will display monthly payment amounts for all repayment plans so you can select the plan that is right for you.
Loan SimulatorAdditional Resources
- Video: How to Create an FSA ID
- Repayment Plan Comparison Chart
- Income-Driven Repayment Plans (StudentAid.gov)
- Income-Driven Repayment Form
English | Spanish
