Income-Based Repayment

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To Be Eligible …

You must make 25 years of eligible payments or 300 payments under the income-based repayment (IBR) program. Only payments made on or after July 1, 2009, count.

Not all borrowers qualify for IBR. To qualify, you must have a partial financial hardship— meaning that payments to your eligible loans exceed 15% of your discretionary income. IBR caps the maximum monthly payment at 15% of your discretionary income. This is the difference between your AGI and 150% of the annual poverty guideline for your family size and state.

If you are eligible, you can have up to 100% of your outstanding balance forgiven after 25 years (10 if you work for a public service or nonprofit employer).

Loans That Qualify
  • Stafford loans
  • Grad PLUS loans
  • Consolidation loans, except loans that include Parent PLUS loans
Next Steps

To apply for IBR, you need to submit two forms to your servicer: an application and an IRS Tax Form 4506-T.

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