Income Based Repayment | Student Loans
Federal Student Loan Income Based Repayment Overview
Income-Based Repayment (IBR) is a new payment option for federal student loans. It can help borrowers keep their loan payments affordable with payment caps based on their income and family size. For most eligible borrowers, IBR loan payments will be less than 10% of their income - and even smaller for borrowers with low earnings. IBR will also forgive remaining debt, if any, after 25 years of qualifying payments.
How much can you save through Income Based Repayment?
Below is a table outlining income based repayment caps, or the absolute maximum your student loan monthly payment will be in income-based repayment. To use this table, find your household income in the left-hand column and then the number of people who live in your household. Typically for most college graduates, you have a household size of 1 - yourself. If you're married, 2. If you're married with children, 3 or more.
For example, if you earn $30,000 a year and you're single with no dependents, the maximum loan payment you'll be required to make on student loans of any size is $70.41/month for as long as you make $30,000 per year.
| Income | 1 in house | 2 in house | 3 in house | 4 in house |
| $15,000.00 | none | none | none | none |
| $20,000.00 | none | none | none | none |
| $25,000.00 | $7.91 | none | none | none |
| $30,000.00 | $70.41 | none | none | none |
| $35,000.00 | $132.91 | $27.72 | none | none |
| $40,000.00 | $195.41 | $90.22 | none | none |
| $45,000.00 | $257.91 | $152.72 | $47.53 | none |
| $50,000.00 | $320.41 | $215.22 | $110.03 | $4.84 |
| $55,000.00 | $382.91 | $277.72 | $172.53 | $67.34 |
| $60,000.00 | $445.41 | $340.22 | $235.03 | $129.84 |
| $65,000.00 | $507.91 | $402.72 | $297.53 | $192.34 |
| $70,000.00 | $570.41 | $465.22 | $360.03 | $254.84 |
| $75,000.00 | $632.91 | $527.72 | $422.53 | $317.34 |
| $80,000.00 | $695.41 | $590.22 | $485.03 | $379.84 |
| $85,000.00 | $757.91 | $652.72 | $547.53 | $442.34 |
| $90,000.00 | $820.41 | $715.22 | $610.03 | $504.84 |
| $95,000.00 | $882.91 | $777.72 | $672.53 | $567.34 |
| $100,000.00 | $945.41 | $840.22 | $735.03 | $629.84 |
| $105,000.00 | $1,007.91 | $902.72 | $797.53 | $692.34 |
| $110,000.00 | $1,070.41 | $965.22 | $860.03 | $754.84 |
| $115,000.00 | $1,132.91 | $1,027.72 | $922.53 | $817.34 |
| $120,000.00 | $1,195.41 | $1,090.22 | $985.03 | $879.84 |
| $125,000.00 | $1,257.91 | $1,152.72 | $1,047.53 | $942.34 |
| $130,000.00 | $1,320.41 | $1,215.22 | $1,110.03 | $1,004.84 |
| $135,000.00 | $1,382.91 | $1,277.72 | $1,172.53 | $1,067.34 |
| $140,000.00 | $1,445.41 | $1,340.22 | $1,235.03 | $1,129.84 |
| $145,000.00 | $1,507.91 | $1,402.72 | $1,297.53 | $1,192.34 |
| $150,000.00 | $1,570.41 | $1,465.22 | $1,360.03 | $1,254.84 |
It's important to note that household size is for you, the student. If you're living at home with your parents, their household size is however many people live in their house, but as you are responsible for your federal student loans, IBR is based on your personal household size and not your parents.
What about interest?
In some situations, your reduced payment under IBR may not cover the interest on your loans. If so, the government will pay that interest on your Subsidized Stafford Loans for your first three years in IBR. After three years and for other loan types, the interest will be added to the total amount you owe. While your debt may grow if your affordable payments are low enough, anything you still owe after 25 years of qualifying payments will be forgiven.
What if I don't qualify?
Income-based repayment is adjusted to your debt to income ratio. If for some reason you don't qualify for the program (ask your lender) you may be eligible for non-student loan debt assistance.
