Income based repayment (IBR) plans for student loan debt is a repayment plan that is influenced by the borrower’s monthly income. An IBR limits the student loan debt payment to 10-15% of your discretionary income—the income you have remaining after taxes, necessities (e.g. rent/mortgage), and mandatory charges (e.g. child support or IRS payment). Even if your discretionary income is fairly decent, you’ll never be charged more than you would have paid with the 10-year Standard Repayment Plan you were initially on when you graduated.

Income-Based Repayment Qualifications and Requirements

  • Proof of income; will be reevaluated each year
  • Total family size
  • Spouse’s income if your file taxes together

Now that you know what an IBR plan is, lets review the pros and cons to see if this student loan repayment plan is best for you.

Income Based Repayment Plans may not be the perfect solution for every student loan debtor, some may benefit more from a refinancing while others may need to consolidate their loans before applying for an IBR. Speak with a loan specialist at The Student Loan Advisory Group to see what student loan help we can provide for your financial situation.