How do I see if I qualify for Income Based Repayment (IBR)?

Try our IBR calculator to see if you might qualify or contact us with any questions.

What is IBR?

Income-Based Repayment is a new repayment plan that can help you manage your student loan debt by lowering your monthly payments. IBR will help make loan payments more manageable by calculating your payment amount based on your adjusted gross income (AGI) and family size.

In order to qualify, you must demonstrate a partial financial hardship (PFH), and if you do, your payments will be capped at 15% of your discretionary income. While under this plan, your situation will be evaluated annually to determine if your PFH has continued. There are additional benefits such as restricted capitalization, loan forgiveness, and interest subsidies that may also be available while on this repayment plan.

If you think IBR may be right for you, use our IBR calculator to see if you qualify. You may also contact us by email or call us at 1-800-337-6884 if you have questions. IBR will be available for borrowers beginning July 1, 2009.

When will IBR be available?

You may request the Income-Based Repayment plan at any time on or after July 1, 2009.

Which borrowers and loans are eligible for this repayment plan?

All borrowers are eligible for this plan as of July 1, 2009, for repayment on Stafford, GradPLUS, and consolidation loans. Parent PLUS loans and consolidation loans that include Parent PLUS loans are not eligible for IBR.

Use our IBR calculator to see if you qualify.

How are payments calculated under IBR?

Monthly payments are calculated as 1/12th of the following:

15% x [AGI - (150% poverty line applicable to family size)]

Are defaulted loans held by the guarantor eligible for IBR?

No, defaulted loans held by guarantors are not eligible for IBR. If a defaulted loan is rehabilitated and repurchased by a Title IV lender, however, that loan then becomes eligible for IBR.

What is adjusted gross income (AGI)?

AGI is the borrower’s adjusted gross income as reported to the Internal Revenue Service (IRS). For a married borrower filing jointly, AGI includes both the borrower’s and spouse’s income, and for a married borrower filing separately, only the borrower’s income.