Income-Based Repayment Plans for Student Loans

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Many people graduate from colleges in the United States with debt. According to, the average 2020 student loan debt was $32,731 per graduate. This means that many people are paying more than $400 per month on their student loan debt when first entering the workforce. But many entry-level jobs, especially those in education and social services, do not pay well enough for recent graduates to balance their student loan payments with rent and other expenses. This is where income-based repayment plans for student loans come in.

What is an income-based repayment plan?

An income-based repayment (IBR) plan is a debt repayment option for anyone holding a federal student loan. This plan sets a person’s monthly student loan payment at an amount that is affordable to the borrower since the payment is based on your monthly income and family situation. The program also promises loan forgiveness in some situations.

These plans are helpful for people who are not making enough money to cover their bills as well as those who do not have a job after graduating. They are designed to help people manage their debt payments while working.