Income-Based Repayment Calculator

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Income-based repayment (IBR) is a type of income-driven repayment plan offered by the federal government that allows borrowers to cap their monthly student loan payments at either 10% or 15% of their discretionary income. After 20 or 25 years of repayment, your remaining student loan balance will qualify for student loan forgiveness.

Your monthly bill will never be more than it would be under the 10-year standard repayment plan, meaning that borrowers struggling to afford payments due to their income will benefit from this plan. Use the calculator below to determine whether the income-based repayment plan will work for your student loans. And click here to explore your other income-driven repayment options.

Student loan refinance lenders to consider

If you are looking for other repayment options, consider the other plans the federal government offers. If you think you can qualify for a lower interest rate, explore student loan refinance lenders below. However, before you decide to refinance your loans, make sure you are paying less and that you’re not giving up benefits you need that the government offers, including student loan forgiveness options and income-driven repayment plans.

Best For

Recommended LenderAPR*
Low ratesCommonBond
  • 3.48% - 8.44% fixed APR
  • 2.37% - 8.05% variable APR
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on CommonBond's secure website

Unemployment BenefitsSoFi
  • 3.49% - 7.94% fixed APR
  • 2.27% - 7.55% variable APR
Apply Now

on SoFi's secure website

Flexible RepaymentEarnest
  • 3.47% - 7.72% fixed APR
  • 2.37% - 6.99% variable APR
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on Earnest's secure website

Best BankCitizens Bank
  • 3.45% - 9.62% fixed APR
  • 2.46% - 9.24% variable APR
Apply Now

on Citizens Bank's secure website

Parent PLUS RefinancingLaurel Road
  • 3.50% - 7.02% fixed APR
  • 2.43% - 6.65% variable APR
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on Laurel Road's secure website

Lender Disclosure
{"onCurrent":true,"clickable":true,"message":"All credit products are subject to credit approval. Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation\u2019s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit \u003Ca class=\"ShortcodeLink--root\" rel=\"nofollow noopener\" target=\"_blank\" title=\"https:\/\/www.laurelroad.com\" href=\"https:\/\/www.laurelroad.com\"\u003Ewww.laurelroad.com\u003C\/a\u003E.","showIcon":false,"tooltipLabel":"Lender Disclosure"}

Recommended Lenders

CommonBond
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on CommonBond's secure website

SoFi
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on SoFi's secure website

Earnest
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on Earnest's secure website

Citizens Bank
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on Citizens Bank's secure website

Laurel Road
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on Laurel Road's secure website

Lender Disclosure
{"onCurrent":true,"clickable":true,"message":"All credit products are subject to credit approval. Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation\u2019s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit \u003Ca class=\"ShortcodeLink--root\" rel=\"nofollow noopener\" target=\"_blank\" title=\"https:\/\/www.laurelroad.com\" href=\"https:\/\/www.laurelroad.com\"\u003Ewww.laurelroad.com\u003C\/a\u003E.","showIcon":false,"tooltipLabel":"Lender Disclosure"}

*Rates include a discount with auto-pay

How is income-based repayment calculated?

Your monthly student loan bill under income-based repayment is determined by your income, family size and annual income growth. If you're a new borrower on or after July 1, 2014, your monthly payment will be generally 10% of your discretionary income. And if you are not a new borrower on or after July 1, 2014, your monthly payment will generally be 15% of your discretionary income.

Keep in mind that if you’re married and you file a joint tax return, your spouse’s income is also considered when determining your monthly payments. Under an IBR repayment plan, your monthly payment should never be more than you would pay under the 10-year standard repayment plan.

What is the income limit for income-based student loan repayment?

There is no income limit to qualify for the IBR plan. To qualify, your monthly payment must be less than what you would pay under the 10-year standard repayment plan. In general, this requirement is met if your student loan balance is higher than your annual discretionary income or is a large portion of your income. If your monthly payment will be more under IBR, it won’t benefit you to switch payment plans.

Each year, you must recertify your income and family size. If you fail to do so, you'll remain on IBR, but your monthly payment will be changed to what you would pay under a 10-year standard repayment plan based on the loan amount owed when you began using IBR. Note that any unpaid interest will be added to the principal balance of your loan. You will be able to return to your income-based payments when you provide your servicer with your updated information and if you still qualify.

Do I qualify for income-based repayment?

In order to qualify, the type of federal student loans you have must be eligible for the IBR plan. Any loans made to parents are not eligible for an IBR plan. Below, we've listed all eligible loan types.

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans (graduate or professional students)
  • Direct consolidation loans (that did not repay any PLUS loans made to parents)
  • Subsidized federal Stafford loans (Federal Family Education Loan [FFEL] program)
  • Unsubsidized federal Stafford loans (FFEL program)
  • FFEL PLUS loans (graduate or professional students)
  • FFEL consolidation loans (that did not repay any PLUS loans made to parents)
  • Federal Perkins loans (eligible if consolidated)

To apply for this plan, you will then have to provide income information to your loan servicer to determine whether you can switch to IBR. You can submit your adjusted gross income (AGI) if you filed a federal income tax return in the past two years and your current income isn't significantly different from what is reported on your most recent tax return.

If you haven't filed in the past two years or your current income is significantly different than what is reported on your federal income tax return, alternative documentation of your income, such as pay stubs, will be accepted. If you don't have any income or only receive untaxed income, you can note that on your application without the need to provide any further documentation.

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