How do I know if I can use IBR?
Income-based Repayment (IBR, 2009) is loan-type specific only
- DIRECT & Federal Family Education Loans (FFEL) qualify for payment under IBR
- HPSL, LDS, Perkins loans can be consolidated into a DIRECT Consolidation loan and paid under IBR
- HPSL = Health Professions Student Loans
- LDS = Loans for Disadvantage Students
- You can consolidate a federal loan that has already been consolidated
- You can begin the Federal Direct Consolidation process at studentloans.gov
- You have to include at least one Direct loan to consolidate HPSL, Perkins or LDS loan types.
Income-based Repayment (IBR, 2014) is borrower and loan-type specific
- IBR was changed by law for those "new borrowers" who received their first Direct loan as of July 1, 2014
- Only Direct loans received by these "new borrowers" can be repaid using IBR, 2014.
- If you qualify for IBR, 2014 your should choose PAYE instead!
- Interest that can be capitalized under PAYE is capped at 10% of your starting repayment balance
- There is no interest capitalization limit under IBR, 2014
- Review the Income-Driven Repayment plan chart before selecting your plan