Income based Repayment Program

The Income-based Repayment Program (IBR) is an alternative payment option for borrowers who cannot afford to pay off their federal student loans under the standard 10-year repayment plan. Monthly payment under the IBR plan is based on the borrower’s income and family size.

Borrowers getting qualified for the IBR plan will continue student loan payments for 25 years after which any outstanding student debt will be forgiven or wiped out. However, if you’re into public service, that is, if you work as a teacher or in government service or at a non-profit [501 (c) (3)] organization, then you may qualify for loan forgiveness after 10 years of payment.




If your student loan payments are relatively higher than your income, you have a chance to qualify for the Income-based Repayment Program. You need to contact your lender (s) and prove that you’re in partial financial hardship.

The lender will determine if you’re eligible for the program.

In order to qualify, you will have to fill out IRS Form 4506-T and authorize your lender to collect your tax returns for the current year and past 3 years. Once you qualify for the IBR plan, you may remain in it even when you’re out of financial hardship.




The federal student loans which can be paid off using the Income-based Repayment Program are:


Stafford loans
Grad PLUS loans
Most of the federal consolidation loans


Loans which are already in default cannot be included in the program.