Income-Based Repayment

Income-Based Repayment (IBR) is a student loan plan that adjusts your monthly payments according to your income and family size. Instead of paying a fixed amount, your payments are capped at a percentage of your discretionary income, making them more manageable if you have a lower or fluctuating income. After a set period, usually 20 or 25 years, any remaining loan balance may be forgiven. IBR helps prevent financial hardship by ensuring your student loan payments are affordable relative to your income, promoting economic stability while gradually paying down your debt.