Income Based Repayment (IBR)
Because graduating from college should be the hard part, not repaying your student loans.
IBR can reduce monthly payments for a maximum of 36 months to help you get through any periods of financial instability. Basically, if you make less money, you pay less monthly.
To qualify, you must be experiencing a financial hardship. If the calculated monthly payment in the Full Monthly Payment plan is higher than the monthly amount calculated under IBR, then you qualify!
IBR monthly payment amounts can increase or decrease year over year based on changes to your income, family size, and location.
Under the IBR Plan, your monthly payments are:
Calculated based on your income & family size
Adjusted each year, based on any changes to annual income and family size
Never higher than the Full Monthly Payment Plan repayment amount at the time of election of IBR
Find out if your financial circumstances qualify you for a lower payment in the IBR program by calling our loan servicer and requesting the A.M. Money Loan Modification program.
Call AES toll-free at 1-800-233-0557
How We Calculate Your Loan
With our IBR program, the amount required to be repaid each month is based on your Adjusted Gross Income (AGI) and family size.
If you are married and you file a joint federal tax return with your spouse, the AGI includes both of your incomes.
The annual IBR repayment amount is 15% of the difference between your AGI and 150% of the Department of Health and Human Services poverty guideline for your family size and state.
This amount is then divided by 12 to get the monthly IBR payment amount. Income-Based Repayment is based on the adjusted gross income during the prior tax year.