Income Based Repayment (IBR) Program
The Income Based Repayment Plan is designed to help borrowers keep their loan payments affordable with payment caps based on income and family size. IBR is available for all federal student loans, except parent PLUS loans. Borrowers with grad PLUS loans will be able to use IBR.
IBR is a federal loan repayment option; it is not available for AlaskAdvantage™ alternative loan programs
In order to qualify for IBR, your documented income and loan debt must meet certain eligibility criteria. If you are eligible, a sliding scale is used to calculate the amount of your monthly payment. If you earn below 150% of the poverty level for your family size and state of residence, you may qualify for a zero payment amount. If you’re otherwise eligible and earn more than 150% of the poverty level, your loan payment will be capped at 15% of whatever you earn above that amount. Except for the highest earners, this amount will usually be less than 10% of total income.
Eligible borrowers who elect the IBR option may qualify for forgiveness of remaining education loan debt, if any, after 25 years of qualifying payments.
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