Income-Based Repayment (IBR): 2026 Payment & Eligibility Guide

IBR is a federal income-driven repayment plan for eligible Direct and FFEL Program loans. Payments are generally 10% or 15% of discretionary income, depending on borrower status, and are capped at the applicable 10-year Standard Repayment Plan amount.

IBR generally applies to eligible Direct and FFEL Program loans disbursed before July 1, 2026. Parent PLUS loans are not eligible, and consolidation loans with Parent PLUS history require special review under the current transition rules.

IBR generally takes 10% or 15% of discretionary income and divides the annual amount by 12. Discretionary income is the amount by which adjusted gross income exceeds 150% of the applicable poverty guideline. The required payment is capped at the applicable 10-year Standard amount.

Federal Student Aid treats a borrower as a new borrower for IBR when the applicable July 1, 2014 conditions are satisfied, including having no outstanding Direct or FFEL balance at the relevant point when obtaining a new loan on or after that date. New borrowers generally use the 10% formula and 20-year horizon.

IBR does not use RAP’s $10 monthly floor. Depending on income, family size, and other calculation inputs, the official income-driven estimate can be very low and may be $0. Use the Federal Student Aid Repayment Calculator for the account-specific estimate.

Yes. The IBR payment will never be more than the amount used for the applicable 10-year Standard Repayment Plan cap. That feature can become important when a borrower’s income rises.

The general IBR repayment period is 20 years for qualifying new borrowers and 25 years for other IBR borrowers before remaining eligible balance may be forgiven, assuming the required qualifying repayment conditions are satisfied.

Yes. IBR is the income-driven repayment plan that can directly cover eligible FFEL Program loans. That makes IBR especially important for some legacy borrowers considering whether consolidation is actually necessary.

Original Parent PLUS loans are not eligible for IBR. Current federal guidance shows a narrow transition pathway for certain Parent PLUS debt consolidated before July 1, 2026 after at least one ICR payment before July 1, 2028, so those histories should be reviewed individually.

Federal Student Aid generally uses joint income when married borrowers file a joint federal tax return and individual income when they file separately. Tax filing decisions can affect much more than student loans, so FedRepay does not provide tax-return advice.

For eligible subsidized loans, current federal-servicer guidance says the government can cover 100% of remaining unpaid interest for the first three consecutive years when the calculated IBR payment does not cover all monthly interest.

IBR can be used for qualifying PSLF payments on eligible Direct Loans when the borrower also satisfies the employment, payment, form, and other PSLF requirements. FFEL loans do not become PSLF-eligible merely because they are on IBR.

Neither is universally better. IBR has a 150%-of-poverty formula, Standard payment cap, and 20- or 25-year general horizon. RAP uses a different AGI-band formula, a $10 minimum, a 30-year general horizon, and different interest and principal benefits. Compare both only after confirming eligibility.

Yes. Income-driven repayment requires annual updating of the information used to calculate the payment. Confirm the specific recertification date in StudentAid.gov or with the official servicer and keep records of the submission.

Use the official Federal Student Aid repayment process and current IDR request through StudentAid.gov. FedRepay can help analyze options and review borrower-completed information within the purchased scope, but the borrower keeps the FSA credentials and submits through the official channel.