managing student loans

Income-Sensitive & Income-Based Repayment

The income-sensitive repayment option is only available on FFELP loans. It is similar to the income-contingent option, but requires that payments be large enough to cover interest charges. This option must be repaid within 10 years.

The income-based repayment option:

• Is available on most federal loans except for parent PLUS.
• Helps borrowers with financial problems, who have low income compared with the debt they owe, or who hope to pursue public service careers.
• Determines payments using a sliding scale that compares the amount you owe with your income and family size. Check with your lender to see if they offer this option and how much payments will be.

To learn more about the income-based repayment program, visit IBRinfo.org.