Income-Based Repament (IBR) Plan

The 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)
  • You can sign up for this plan at

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.