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