IBR
Business & Finance abbreviation · Personal Finance
| Stands for | Income-Based Repayment |
|---|---|
| Categories | Business & Finance |
IBR stands for Income-Based Repayment, a personal finance abbreviation.
Federal student loan repayment plan that caps monthly payments at 10% or 15% of discretionary income, depending on when the borrower first took out loans, and never above the standard 10-year payment. Any remaining balance is forgiven after 20 or 25 years.
Example: Because my loans predate 2014, my IBR payment is set at 15% of discretionary income.
Usage notes
Created in 2007 and revised in 2010 to offer the lower 10% rate and 20-year term to new borrowers from July 1, 2014. Discretionary income here means income above 150% of the federal poverty guideline for the family size. Because IBR is written into statute, it has outlasted regulatory plans that were challenged in court.
Related abbreviations
More personal finance abbreviations
- FIRE – Financial independence, retire early
- FRA – Full retirement age
- FSA – Flexible spending account
- HCOL – High cost of living
- HSA – Health savings account
- HYSA – High-yield savings account
- IDR – Income-driven repayment
- IRA – Individual retirement account
- ISA – Individual Savings Account
- IVA – Individual voluntary arrangement
- LCOL – Low cost of living
- LISA – Lifetime ISA