Income-Based Repament (IBR) Plan
- Possible $0.00 monthly payment
- Payments are based off your income and family size
- Extened Repayment terms
- May lead to forgiveness after 25 years of qualifying payments (If you are a new borrower it is after 20 years)
Payments and Terms
Monthly payments are calculated using 15% of your discretionary income (10% for new borrowers) and family size. On this plan payments are made for up to 25 years.
* Discretionary income is the money you have left over after the deductions of taxes and other mandatory charges.
To qualify as a new borrower on IBR, you cannot have a loan taken out before July 1, 2014 but you must have a loan taken out on/after July 1, 2014.