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Income-Based Repayment (IBR): eligibility and payment basics

IBR generally calculates payments from discretionary income and has a payment cap tied to the 10-year Standard Plan. The applicable formula depends on when you first borrowed.

Last reviewed October 11, 2026Independent educational guideOfficial source linked below
Start with official eligibility

Plan rules depend on loan type, disbursement dates, consolidation history, and borrower-specific facts. Confirm eligibility with Federal Student Aid before applying.

IBR is an income-driven plan with a payment calculation based on discretionary income and a cap tied to what the borrower would pay under the 10-year Standard Repayment Plan. The percentage and repayment period depend on when the borrower first received qualifying loans. Loan eligibility and changes enacted for loans disbursed on or after July 1, 2026 make dates particularly important.

Payment calculationGenerally 10% of discretionary income for qualifying new borrowers, or 15% for other borrowers, divided by 12.
Repayment period20 years for qualifying new borrowers; 25 years for others
General availabilityEligible Direct and FFEL Program loans disbursed before July 1, 2026, subject to the program’s borrower and loan rules.

10% vs. 15%: the first-borrowed date matters

Current Federal Student Aid guidance describes the 10% formula for qualifying new borrowers and 15% for borrowers who do not meet that definition. The agency generally defines a “new borrower” by whether the person had outstanding Direct Loan or FFEL balances when receiving a loan on or after July 1, 2014. Confirm the rule against your actual borrowing history.

Repayment period and payment cap

IBR generally has a 20-year repayment period for qualifying new borrowers and 25 years for others. The monthly amount will not exceed the applicable 10-year Standard Plan amount under the published plan rules. A lower starting payment does not always mean lower lifetime cost.

Which loans may qualify

IBR can cover eligible Direct Loans and certain FFEL Program loans. Parent PLUS loans are not directly eligible, and consolidation history may be important for some borrowers. Loans disbursed on or after July 1, 2026 can change which IDR options are available, so check the official eligibility table first.

Before applying

Review adjusted income, household/family information, the exact loan types, payment history, and any PSLF objective. Compare IBR against RAP and any other option available to you. For borrowers in public service, check that the specific repayment plan and payments are qualifying under current PSLF rules.

Step-by-step: what to do next

  1. Confirm each loan’s type and first-disbursement date on StudentAid.gov.
  2. Review whether you meet IBR’s borrower-history requirements and whether any loan needs consolidation.
  3. Use the official calculator to compare IBR with RAP and any other eligible options.
  4. Complete the official IDR application and provide the requested income documentation or IRS consent.
  5. Record the submission and monitor application status, the servicer’s messages, and annual recertification date.

Important cautions

  • Do not assume the 10% formula applies to every borrower.
  • A payment cap applies under IBR, but not under RAP.
  • Parent PLUS and certain consolidated loans have special restrictions.
  • Review the effect of switching plans on payment counts and timing.

Official source and next action

Use the official repayment-plan guidance before acting. Your servicer determines the payment due after processing and can confirm your account-specific status.

Open official Federal Student Aid guidance ↗

This page is educational material, not a determination of your eligibility or payment amount. Official source pages can change; revisit the linked source before relying on a deadline.