IBR sets your payment from discretionary income and caps it at the Standard 10-year amount, then forgives whatever is left at month 240. On a $60,000 balance at 6.5% that runs from $134 a month at $40,000 of income to $634 at $100,000.
All figures on this page computed on September 4, 2026 with the parity verified Finology Software engine (engine date 2026-09-04). Estimates for planning only, not advice.
For borrowers
Keep track of your own loans. A free borrower account puts every loan in one place, and you can find a student loan advisor when you want one.
For advisors
Running IBR for a client? Finology Software reads the client’s federal loan file, shows the IBR payment next to every plan they can still elect, and produces the report you hand them.
Run your own numbers
The calculator below uses the same engine as the table below. It prices PAYE and ICR alongside IBR, with PAYE shown on the stated assumption that you are a PAYE new borrower, and it lists any plan your loan cannot elect under Not shown with the reason rather than quoting a payment you cannot get.
What is the IBR payment at my income?
The table below holds the balance and rate steady and moves income. Note that the payment never reaches the $681 Standard figure, because IBR is capped there by design.
| Annual income (AGI) | IBR monthly | IBR lifetime cost | Forgiven at month 240 | Tax on forgiveness |
|---|---|---|---|---|
| $40,000 | $134 | $55,058 | $105,382 | $22,938 |
| $50,000 | $217 | $71,432 | $85,275 | $19,312 |
| $60,000 | $301 | $86,846 | $65,168 | $14,726 |
| $70,000 | $384 | $98,776 | $30,252 | $6,656 |
| $85,000 | $509 | $95,517 | nothing, loan repaid | none |
| $100,000 | $634 | $84,148 | nothing, loan repaid | none |
When does IBR forgive, and what does forgiveness cost?
IBR forgives at month 240. That is 10 years earlier than RAP, which is the single biggest reason IBR can finish cheaper even when its monthly payment is higher. The forgiven balance is treated as taxable income in the year it lands, and the table above carries that number rather than leaving it out.
Can I still enroll in IBR?
Yes, for loans made before July 1, 2026. PAYE and ICR stay open to eligible borrowers but end by July 1, 2028, so for most borrowers the lasting choice is between IBR and RAP. A federal loan made on or after July 1, 2026 can use RAP or the Tiered Standard plan, not IBR.
New IBR vs old IBR
IBR has two versions, and which one you get depends on when you first borrowed. If you had no federal loan balance before July 1, 2014, and no federal loan made on or after July 1, 2026, IBR is 10% of your discretionary income with forgiveness after 20 years (240 payments). If you had a federal loan balance before July 1, 2014, it is 15% with forgiveness after 25 years (300 payments). The table above uses the 10% version.
Discretionary income is your adjusted gross income above 150% of the federal poverty guideline for your family size; the discretionary income calculator works it out. Married? Filing separately can change your IBR and RAP payment.
Frequently asked questions about IBR
How is the IBR payment calculated?
IBR sets your payment from your discretionary income, and it is capped so it never exceeds what you would pay on the Standard 10-year plan. On a $60,000 balance at 6.5% that cap is $681, which is why the IBR payment in the table above tops out at $634 even at $100,000 of income.
When does IBR forgive the remaining balance?
At month 240, which is 20 years of qualifying payments. At $60,000 of income the engine projects $65,168 forgiven. At higher incomes the loan is repaid before month 240 and nothing is forgiven.
Will I owe tax on the amount IBR forgives?
Under current federal rules yes, the forgiven balance is treated as taxable income in the year it is forgiven. At $40,000 of income that is $105,382 forgiven and $22,938 of tax.
Can I still choose IBR?
Yes, for loans made before July 1, 2026. PAYE and ICR stay open to eligible borrowers but end by July 1, 2028, so for those loans the lasting choice is between IBR and RAP. A federal loan made on or after July 1, 2026 can use RAP or the Tiered Standard plan, not IBR.
Is IBR or RAP better for me?
It turns on income. On this balance RAP is the lower monthly payment up to about $70,000 of income and IBR is lower above it, but IBR forgives 10 years earlier, at month 240 against RAP’s month 360. The RAP vs IBR calculator compares them row by row.
Are these the same numbers a financial advisor would use?
Yes. Every figure on this page comes from the same engine that serves advisors inside Finology Software, and each plan row is checked against the parity oracle before it is published.