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