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Income-Based Repayment Plan Alternative Documentation of Income

Income-Based Repayment

Income-Based Repayment (IBR) is an alternative student loan repayment plan. Unlike other repayment plans, which may require a one-size-fits-all payment amount, IBR establishes a monthly payment that looks at your unique situation by considering your income, family size, and federal student loan debt.

How do I qualify?

You must meet certain criteria in order to qualify for IBR. You can use TG's IBR calculator to help you determine if you may be eligible for this program. If it appears that you are eligible, the calculator will provide you an estimated monthly payment amount under IBR.

What kinds of loans are eligible for IBR?

IBR is only available for federal student loans, such as the Stafford, Grad PLUS and certain Consolidation loans. It is not available for Parent PLUS loans, Consolidation loans that include Parent PLUS loans, non-federal student loans, or defaulted loans.

How long is the repayment term for loans under the IBR plan?

Loans paid under the IBR plan have a maximum 25-year repayment term. Any outstanding principal and interest still owed after 25 years of qualifying payments will be forgiven.

How do I apply for IBR?

To apply for IBR, you must complete the required forms and submit them to your lender. If you have more than one lender, you must submit the required forms to each one. Your lender(s) will make a final determination of your eligibility for IBR. If you are eligible and approved, you will be required each year to re-submit your application, and your lender(s) will re-evaluate your eligibility for IBR on an annual basis. Your monthly payment amount could be adjusted as a result. If you decide to contact your lender(s) about IBR, it will be helpful to have information from your federal income tax return filed in the previous year.

If you have loans guaranteed by TG and want to apply for IBR, it's easy to get started!

First, you will want to access myTG℠ to determine the lender of your TG loans. If you have more than one lender, you must request a review for IBR eligibility from each one. In the event you have loans with another guarantor, you can access a complete list of your student loans by going to the National Student Loan Data System (NSLDS) web site. NSLDS includes information about loans guaranteed by TG, another guarantor, and the U.S. Department of Education. Once you have obtained a listing of all of your federal student loans, you will need to obtain a copy of your federal income tax return filed in the previous year and complete the IBR application form. The application and all required documentation must be sent to your lender(s).

I am not eligible for IBR. What can I do now?

If you are not eligible for IBR, visit TG's Helpful Repayment Options page for more information about the different repayment options available to borrowers. You may also want to consider an Economic Hardship Deferment if you do not qualify for IBR or have only a temporary income problem.