Who qualifies for Income-Based Repayment (IBR)?

You may qualify for IBR if:

• your federal education debt is high enough in relation to your income to qualify for a reduced payment.
• you have Stafford, Grad PLUS, or federal consolidation loans that do not include Parent PLUS loans.
• you are seeking a long term plan for repayment.

Which loans are not eligible?

• Parent PLUS loans or consolidation loans that include Parent PLUS loans.
• Private (or "alternative") student loans, state loans, and other loans not guaranteed by the federal government.

How can I estimate what my payment will be?

For a calculator that can be used to estimate your eligibility for Income-Based Repayment, please visit Mapping Your Future at http://www.mappingyourfuture.org/paying/ibrcalculator.cfm

How can I apply?

If this is the plan you wish to pursue you may download the application (PDF)

To apply for IBR, complete and sign the application, and return it to VSAC along with the required documentation.

Incomplete forms or documentation will delay your request. Please:

• complete, sign, and date the application;
• provide us with a signed copy of the first two pages of your most recent federal income tax return (Form 1040, 1040A, or 1040EZ). If you filed electronically, you must sign the tax return before sending it to us; or
• enter your family size in Section 3;
• list your federal student loans not held by VSAC in Section 4

Please note that although the IBR application includes a requirement for you to provide consent for the IRS to disclose your Adjusted Gross Income to VSAC, at this time you need to provide only a signed copy of the first two pages of your tax return.

If you did not and do not plan to file a tax return for the most recent tax year:

• include a signed statement to that effect.
• complete and sign the Alternative Documentation of Income form (PDF) and return it to VSAC.

Do I have to apply for reduced payments each year?

Yes, you must submit a new application every 12 months to determine whether you are eligible for another year of reduced payments under the IBR plan.

What else should I know?

• Making reduced payments in IBR may not cover the interest on your loans. As a result, the loan balance can grow and you may pay more interest over the life of the loan.
• While in IBR, your payment is assessed annually. If your income increases, your payment will likely increase.
• After 25 years of qualifying payments in IBR borrowers who have a remaining loan balance may qualify for loan forgiveness.
• IBR is one of several long-term payment plans and is not right for everyone. There are other options available, both short- and long-term.
• If you have a consolidated loan we strongly encourage you to call us to discuss your options prior to applying for IBR.