Income-Based Repayment (IBR) is a student loan repayment plan available for FFELP and FDLP borrowers. Unlike other repayment plans, IBR establishes a monthly payment that looks at your unique situation by considering your income, family size, and federal student loan debt.
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.
IBR is only available for federal student loans, such as the Stafford, Direct, Grad PLUS, Direct Student PLUS, and certain Consolidation loans. It is not available for Parent PLUS Loans, Direct Parent PLUS Loans, Consolidation loans that include Parent PLUS or Direct Parent PLUS Loans, non-federal student loans, or defaulted loans.
The repayment term for loans paid under the IBR plan may extend up to 25 years. Any outstanding principal and interest still owed after 25 years of qualifying payments will be forgiven and may be taxable.
To apply for IBR, you must complete the Repayment Plan Request form and submit it to your loan holder. If you have more than one loan holder, you must submit the required form to each one. As an alternative, you may be able to apply for IBR online. Check with your loan holder for availability and details.To get started, access a complete list of your student loans by going to the National Student Loan Data System (NSLDS) website. NSLDS includes information about loans guaranteed by TG, another guarantor, and ED. 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 loan holder(s).
Your loan holder(s) will make a final determination of your eligibility for IBR. In certain situations, your loan holder may require you to submit alternative documentation of income to determine your IBR eligibility and payment amount. For example, if your AGI is not available from the IRS or your loan holder believes that your AGI does not reasonably reflect your current income. Alternative documentation is at the discretion of your loan holder.
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.