Reduce your federal student loan payments based on your income and family size. Get affordable payments with forgiveness after 20-25 years.
Income-Based Repayment (IBR) caps your monthly payments at 10-15% of your discretionary income, making federal student loans more manageable for borrowers with financial hardship.
Your monthly payment is capped at 10% (new borrowers) or 15% (existing borrowers before 2014) of your discretionary income.
Larger family sizes reduce your discretionary income calculation, potentially lowering your payments even further.
Any remaining balance is forgiven after 20 years (undergraduate loans) or 25 years (graduate loans) of qualifying payments.
Must demonstrate that IBR payments would be less than standard 10-year repayment plan payments.
*Example calculation - actual payments may vary