IBR is one of the newest student loan repayment programs. In college students may take out student loans that are larger than they can handle. But there are no repayment requirements until after graduation. This means the debt can really pile up. Once a student graduates, the payments may take all of their initial career earnings.

This can be a huge problem and keep people under the poverty line. It can result in children going without. This debt mountain can destroy relationships. People in this kind of debt may never have the resources pooled to rise above it.

The federal government developed IBR to deal with this issue. The abbreviation IBR means income based repayment. The program sets your student loan payments based on your income and the size of your family. This helps borrowers stay afloat and take care of their families.

IBR is a great way for many people to deal with student loan debt. It provides a viable repayment option. There are additional attractive elements to IBR. For example, you might remain in the program for 25 years. You may be able to have your debt cancelled at the end of this term.

It should not surprise you that there is some paperwork involved in IBR. They program requires a yearly evaluation of your income based on the past year’s earnings. Of course the size of your family can change too. However you will find that your payments cannot exceed 15 percent of the amount you make over the poverty line. It is possible that at some point you may be below the poverty level for your family size. Should this happen you will pay nothing. This helps keep your debt manageable.

A lot of people want to learn more about IBR. They may think that they cannot participate because they use other programs. However many programs are fully compatible with IBR. It’s highly unlikely you would lose by switching over. You can also belong in IBR and still be eligible for student loan forgiveness. Participating in IBR does not make you ineligible for forgiveness based on public service.