Income-Based Repayment Rechner — Formel

How Income-Based Repayment Works

IBR caps payments at a percentage of your discretionary income.

Formula

Monthly Payment = (Discretionary Income x IBR%) / 12

Where Discretionary Income = AGI - 150% of Poverty Guideline for your family size.

  • New borrowers (after 2014): 10% of discretionary income
  • Older borrowers: 15% of discretionary income

    • Lösungsbeispiel

    Single borrower earning $45,000 with 10% IBR rate.

    1. Poverty guideline for family of 1 = $15,060
    2. 150% of poverty = $15,060 x 1.5 = $22,590
    3. Discretionary income = $45,000 - $22,590 = $22,410
    4. Monthly payment = round($22,410 x 10% / 12) = round($187) = $187