Income-Based Repayment Plan (IBR)

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This plan is intended for borrowers whose outstanding loans exceed their current student loan balance. It applies to various types of loans, including Direct Loans (both Subsidized and Unsubsidized), Stafford Loans (both Subsidized and Unsubsidized), PLUS Loans made to students, and Consolidated loans (Direct or FFEL) without Parent Plus Loans.

Under IBR, payments are calculated to be less than about 20% of your discretionary income. It's important to keep your income and family size information updated, even if there are no changes. If these factors do change, your payments will be adjusted accordingly.

For married couples, if you file taxes jointly or choose to jointly pay your Direct Loans with your spouse, both your incomes will factor into the discretionary income calculation.

After 25 years, any remaining loan balance will be forgiven. 

This plan can be particularly beneficial if your loan balance exceeds your income. It's also a suitable option for those pursuing the Public Service Loan Forgiveness (PSLF) program.

Keep in mind that, over time, you may end up paying more compared to the 10-year Standard Repayment Plan. Additionally, there's a possibility of income tax being applied to any balance that's

forgiven.

Please let us know if you need further clarification or information about this plan.