Income-Based Repayment (IBR)

Income-Based Repayment (IBR) is a federal program designed to help borrowers manage their student loan debt based on their income levels. Under IBR, monthly payments are capped at a percentage of the borrower's discretionary income, making payments more manageable, especially for those with lower earnings. After 20 or 25 years of qualifying payments, any remaining loan balance can be forgiven. The program aims to prevent financial hardship, ensuring that borrowers can meet their living expenses while repaying their loans. Eligibility generally includes having federal government-backed student loans.