Short answer
IBR sets payments at 10 or 15 percent of discretionary income, never above the 10-year Standard amount, with forgiveness at 20 or 25 years for qualifying borrowers. Most Direct and FFEL loans disbursed before July 1, 2026 may use IBR when rules allow. If all loans are post-2026, only RAP is available as IDR.
Who this is for
- Borrowers with federal loans first disbursed before July 1, 2026
- SAVE alumni comparing whether IBR or RAP yields a lower payment
- PSLF candidates who need qualifying IDR payments on older loans
Who should not use this
- Borrowers whose only loans were disbursed on or after July 1, 2026 (RAP is the only IDR plan)
- Parent PLUS borrowers expecting IBR on loans consolidated after July 1, 2026
- Borrowers who only want the lowest fixed payment without caring about PSLF (compare Tiered Standard carefully)
IBR sets payments at 10 or 15 percent of discretionary income, never above the 10-year Standard amount, with forgiveness at 20 or 25 years for qualifying borrowers. Most Direct and FFEL loans disbursed before July 1, 2026 may use IBR when rules allow. If all loans are post-2026, only RAP is available as IDR.
What IBR is
Income-Based Repayment (IBR) is a federal income-driven repayment (IDR) plan. Your monthly payment scales with discretionary income instead of fixed amortization like the Standard plan. Federal Student Aid describes IBR in the IDR FAQ alongside RAP, PAYE, and ICR.
IBR is not a private product. You apply through the free IDR Plan Request at StudentAid.gov/idr. Anyone charging an enrollment fee is selling paperwork the government already provides. See student loan scams and paid forgiveness.
Who can still request IBR after July 1, 2026
The disbursement split is the headline rule from Federal Student Aid:
| Situation | IBR available? |
|---|---|
| All loans disbursed on or after July 1, 2026 | No (RAP is the only IDR plan) |
| At least one loan disbursed before July 1, 2026 | Maybe, plus RAP, ICR, or PAYE depending on type |
| Parent loans consolidated after July 1, 2026 | Not eligible for IBR per Federal Student Aid |
| Defaulted loans | Not until rehabilitation or qualifying consolidation |
Most Direct and FFEL loans disbursed before July 1, 2026 may use IBR when other eligibility rules pass. Parent PLUS loans remain special. Parent borrowers who hold only Parent PLUS are not IDR eligible unless they consolidated into Direct Consolidation before July 1, 2026 under federal rules.
For application steps, read apply for RAP or IBR on StudentAid.gov. For consolidation traps, read Direct Consolidation after July 1, 2026.
How IBR calculates your payment
Federal Student Aid summarizes IBR as:
- 15 percent of discretionary income for most borrowers, or
- 10 percent of discretionary income if you are a new borrower under the July 1, 2014 definition.
In every case, the IBR payment is never more than what you would pay on the 10-year Standard Repayment Plan with the same loans.
Discretionary income under IBR uses federal poverty guidelines. Your servicer applies the formula after you certify income through the IDR application. You may consent to IRS retrieval of federal tax information, which Federal Student Aid recommends, or submit acceptable tax or non-tax documents. Non-tax documents must be no older than 90 days when you sign the IDR request.
Use the repayment plans calculator and the federal repayment calculator before you lock in IBR for multiple years.
New borrower status matters
Federal Student Aid defines a new borrower as someone who had no outstanding federal student loan balance on July 1, 2014, or had no outstanding balance when receiving a new loan on or after July 1, 2014.
New borrower status switches you to:
- 10 percent of discretionary income instead of 15 percent, and
- 20 years to forgiveness instead of 25 years for qualifying borrowers under IBR rules.
Old vs new borrower status does not change Parent PLUS exclusions or post-2026 consolidation blocks. It mainly changes your percentage and forgiveness horizon.
Forgiveness and possible federal tax
IBR may forgive remaining balances after 20 or 25 years of qualifying payments, depending on new borrower status. Forgiveness is subject to federal program rules and servicer tracking.
Federal Student Aid’s IDR FAQ notes that amounts forgiven from income-driven repayment on or after January 1, 2026 may be subject to federal income tax. Plan for tax questions with a qualified tax professional. This site does not give tax advice.
RAP vs IBR vs Tiered Standard at a glance
| Feature | RAP | IBR | Tiered Standard |
|---|---|---|---|
| Driven by income? | Yes (AGI brackets) | Yes (discretionary income) | No (fixed tiers) |
| Only IDR if all loans post 7/1/2026 | Yes | No | N/A |
| Payment cap vs Standard | 10 percent of AGI max | Never above 10-year Standard | Fixed schedule |
| Forgiveness horizon | 30 years | 20 or 25 years | Paid over term, not IDR forgiveness |
| PSLF qualifying payments? | Yes | Yes | No |
Full decision trees live in RAP vs IBR vs Tiered Standard. Tiered Standard explained covers fixed payments for newer loans.
RAP uses 1 to 10 percent of AGI divided by 12, minus 50 dollars per dependent, with a 10 dollar floor and 30-year forgiveness. See RAP explained.
Legacy PAYE and ICR remain only until no later than July 1, 2028. If you still see them on your form, read PAYE and ICR end in 2028.
When IBR beats RAP (and when it does not)
IBR can win when:
- You are a new borrower at 10 percent discretionary income and RAP’s AGI bracket produces a higher payment at your dependents and AGI.
- You are close to 20 or 25 year IBR forgiveness and switching to RAP’s 30-year clock would slow forgiveness (if forgiveness is your primary goal).
- You need a payment capped at the 10-year Standard amount and RAP’s formula would exceed that cap (run both in calculators).
RAP can win when:
- RAP’s dependent reduction and AGI percentage produce a lower dollar payment.
- You want a single formula published in 2026 materials without legacy plan sunset risk before 2028.
- All loans are post-2026 anyway, so RAP is your only IDR option.
If you left SAVE in 2026, compare both plans quickly using SAVE ended: what to do now as context.
PSLF and IBR
IBR payments count toward PSLF when you meet employment, loan, and plan rules. Tiered Standard does not.
Before you leave IBR for Tiered Standard because the fixed payment looks attractive, read PSLF in 2026: do not refinance. Refinancing federal loans to private loans also ends PSLF eligibility.
Apply, recertify, and update income
- Submit the free IDR application at StudentAid.gov/idr.
- Track My Activity until status shows Completed or prompts Action Required.
- Recertify annually. Federal Student Aid recommends submitting 90 days before your deadline. Missed recertification can raise payments because they are no longer income-based until fixed.
- Report job or family changes through Manage Your Plan on the IDR page or documents to your servicer. See IDR recertification and income changes.
Auto-recertification uses IRS consent and begins 120 days before your recertification date when enrolled. Servicers must notify you at least 21 days before a payment due date when auto-recert changes the amount.
Federal auto pay may reduce interest by 1 percent from July 1, 2026 through June 30, 2028 when you enroll by December 31, 2026 or stay enrolled. See federal autopay discount through 2028.
FAQ
Who can use IBR in 2026?
Federal Student Aid states that if all loans were disbursed on or after July 1, 2026, only the Repayment Assistance Plan is available as income-driven repayment. If you have loans disbursed before that date, you may choose among RAP, IBR, ICR, or PAYE depending on loan type. Most Direct and FFEL loans disbursed before July 1, 2026 may use IBR when other rules allow.
How is the IBR payment calculated?
IBR payments are generally 15 percent of discretionary income for most borrowers, or 10 percent if you are a new borrower who meets Federal Student Aid’s July 1, 2014 definition. Monthly payments are never more than the amount you would pay on the 10-year Standard Repayment Plan with the same loans. Discretionary income ties to federal poverty guidelines that your servicer applies using your certified income.
What is a new borrower for IBR?
Federal Student Aid defines a new borrower as someone with no outstanding federal student loan balance on July 1, 2014, or someone who had no outstanding balance when receiving a new loan on or after July 1, 2014. New borrowers qualify for the 10 percent discretionary income formula and the 20-year forgiveness timeline rather than 15 percent and 25 years.
How long until IBR forgiveness?
Forgiveness timing on IBR is generally 25 years for borrowers who are not new borrowers and 20 years for new borrowers who meet Federal Student Aid’s definition, measured in qualifying payments under plan rules. Federal Student Aid also notes that loan amounts forgiven on or after January 1, 2026 may be subject to federal income tax.
How does IBR differ from RAP?
RAP uses adjusted gross income with a 1 to 10 percent sliding scale, dependent reductions, a 10 dollar floor, and 30-year forgiveness. IBR uses discretionary income at 10 or 15 percent, caps at the 10-year Standard payment, and forgives at 20 or 25 years. RAP is the only IDR option when every loan was disbursed on or after July 1, 2026.
Do IBR payments count for PSLF?
Income-driven payments on IBR count toward Public Service Loan Forgiveness when all other PSLF rules are satisfied, including eligible employment and qualifying loans. Payments on the Tiered Standard Plan do not count. Confirm your employer and loan types in the federal PSLF Help Tool before you switch plans.
Sources
Primary citations for this guide are listed in the article frontmatter and rendered through the ArticleSources component. Federal Student Aid’s IDR FAQ is the controlling source for IBR rules as of November 13, 2026.
Sources
- Top FAQs About Income-Driven Repayment Plans (Federal Student Aid) (as of November 13, 2026)
- Repayment Calculator (Federal Student Aid) (as of November 13, 2026)