Income-Based Repayment (IBR) takes into consideration your income, family size
and federal education loan debt.
- Grad PLUS
- Federal Consolidation Loans including the above and/or Perkins, HPSL, HEAL and FISL loans
- Spousal Consolidation Loans if the above loan types are included
- Parent PLUS
- Consolidation Loans including Parent PLUS loans
- Private student loans, state loans or other loans not guaranteed by the federal government
You must recertify your income and family size every 12 months to qualify for a reduced monthly payment.
How does the IBR plan work?
You must provide the following to determine your eligibility:
- Application form. Family size, federal
student loan debt and original signatures must be included. Faxes and forms
without signatures will not be processed.
- A copy of your most recent tax return (Form 1040, 1040A or 1040 EZ) must be included
with your application.
- If your most recent tax return does not reflect your current financial situation, you may submit alternative income documentation.
The federal government will subsidize the first three years of unpaid interest on subsidized loans.
If you wish to change to a different repayment plan, we must receive your request in writing.
There are 3 payment levels in IBR:
How Payments Are Applied:
- Partial Financial Hardship(PFH) - reduced payment amount for which you must qualify annually based on income and family size.
- Permanent-Standard – standard payment amount after you no longer qualify for the reduced payment amount.
- Expedited-Standard – payment amount based on the outstanding principal and remaining loan term if you decide to exit IBR.
- Collection costs
- Late charges
Estimate your eligibility with an online calculator here.
Deferments and Forbearance:
A deferment or forbearance may be requested while you are in an IBR plan. The Economic Hardship Deferment will count toward your 25 year loan forgiveness period. Interest may accrue and be added to your principal balance at the end of your deferment or forbearance.