For many graduates, this program can lower their monthly student loan payment by hundreds of dollars. It is important to note however, that a lower monthly payment may actually cause the total amount paid over the life of the loan to be more than under the standard 10-year plan.
The Income Based Repayment (IBR) program is not the first of its type. The Income Sensitive and Income Contingent repayment plans are also offered by the Department of Education, with slightly different formulas and features.
