Income Based Repayment (IBR)

If you’re on the IBR plan, you may qualify for partial loan forgiveness.

Am I eligible?

If you make 25 years of eligible payments or 300 payments under the income-based repayment (IBR) program, you might qualify for this option. Only payments made on or after July 1, 2009, count, and not everyone qualifies for IBR. To qualify, you must have a partial financial hardship, meaning that payments to your eligible loans exceed 15% of your discretionary income. IBR caps the maximum monthly payment at 15% of your discretionary income. This is the difference between your AGI and 150% of the annual poverty guideline for your family size and state.

How much am I eligible for?

If you are eligible, you can have up to 100% of your outstanding balance forgiven after 25 years (10 if you work in public service).

Which loans qualify?

• Stafford loans
• Grad PLUS loans
• Consolidation loans, except loans that include Parent PLUS loans

How do I apply?

To apply for IBR, you need to submit two forms to your servicer: fill out the IBR application here and an IRS Tax Form 4506-T.


Questions? Contact Us!
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