How much will my income-based student loan payment be?
How much will my income-based student loan payment be?
The income-driven plan you use
| Plan | Payment Amount |
|---|---|
| Pay As You Earn (PAYE) | 10% of your discretionary income. |
| Income-Based Repayment (IBR) | 10% of discretionary income if you borrowed on or after July 1, 2014; 15% of discretionary income if you owed loans as of July 1, 2014. |
What is the income limit for IBR?
Your eligibility for IBR is effectively a debt-to-income test – there is no official income limit. If your loan payments would be lower under IBR than if you paid off your loan in fixed payments over 10 years, you can enroll. If your income later increases, you are not disqualified to have your debt forgiven under IBR.
What percentage is IBR?
15%
Income-based repayment caps monthly payments at 15% of your monthly discretionary income, where discretionary income is the difference between adjusted gross income (AGI) and 150% of the federal poverty line that corresponds to your family size and the state in which you reside.
Is Repaye or IBR better?
Most will do better under REPAYE because their IBR payment would be higher (15% of discretionary income vs 10%) and, if they have only undergraduate loans, their IBR repayment period will be longer (25 years vs. 20).
How is IBR calculated for a student loan?
When applying for IBR, the government looks at your income, family size, and state of residence to calculate your monthly payments. Your monthly payment on IBR would be $86, a difference of $297 from what you are currently paying. If your income increases over time, your payments may increase.
How to calculate income based repayment for student loans?
This student loan income-based repayment calculator will automatically calculate how much student loan forgiveness you could receive under student loan income-based repayment. This income-based repayment calculator for student loans also compares your monthly and total payments under the Standard Repayment Plan and IBR.
How to get South Carolina student loan rates?
Visit our COVID-19 Page for repayment services contact information and helpful information concerning the virus. You may use the Contact Us page to reach our Loan Programs Team or contact us by phone at (800) 347-2752. Your success is our end goal.® Student rates as low as 2.70%*, so you can follow your dreams. Apply Now
What is the monthly payment for the IBR Plan?
If you choose the IBR plan, your monthly student loan payment would be $149 which is $184 lower than your current monthly payment. With an annual income growth of 3%, your final monthly payment would be $330. After you make 21.4 years of monthly payments, you will have paid $58,094 and would receive $0 in student loan forgiveness.