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Repayment Options | Deferment | Forbearance | Loan Forgiveness |
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Payment Solutions - Repayment Options

Income-Based Repayment

Income-Based Repayment (IBR) takes into consideration your income, family size and federal education loan debt.

Eligible Loans:
  • Stafford
  • SLS
  • 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
Ineligible Loans:
  • Parent PLUS
  • Consolidation Loans including Parent PLUS loans
  • Private student loans, state loans or other loans not guaranteed by the federal government
Recertification:

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.

Payment Levels:

There are 3 payment levels in IBR:

  • 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.
How Payments Are Applied:
  1. Interest
  2. Collection costs
  3. Late charges
  4. Principal
Calculator:

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.

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