Income-Based Repayment Plan

Effective July 1, 2009, an Income-Based Repayment (IBR) Plan is available to all FFELP and Direct Loan borrowers who have a partial financial hardship, except for:

• FFELP or Direct Loan PLUS Loan (parent) borrowers.
 
• FFELP or Direct Loan Consolidation Loan borrowers who consolidated PLUS Loans (parent).

You must qualify for this repayment plan by providing required documentation to prove you have a partial financial hardship. Under this repayment plan, your monthly installment amount is based on your annual adjusted gross income (AGI) and family size. Use the Federal Student Aid calculator to find out if you qualify for this plan.

The installment amount may change every 12 months, as annual verification of your AGI and family size is required. The maximum repayment period may exceed 10 years under this repayment plan. If you repay under this plan and meet certain other requirements over a specified period of time, you may qualify for cancellation of any outstanding balance on your loans. You may have to pay income tax on any amount that is cancelled.

If the monthly payment amount does not cover accrued interest on a subsidized Federal Stafford Loan, the U.S. Department of Education will pay the remaining interest for a period of three years. More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.

If you apply for this repayment plan, you are required to provide CollegeInvest with current tax return information.

Download the Income-Based Repayment Plan Application