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IBR is a new student loan repayment program started in July of 2009. In college students may take out student loans that are larger than they can handle. But there are no repayment requirements until after graduation. This can result in major debt. After they graduate, a student may owe more than they may in their new career.

This can be a huge problem and keep people under the poverty line. It can result in children going without. This mountain of debt can sabotage marriages. People may never be able to rise above this debt because they are spread too thin.

The federal government developed IBR to deal with this issue. IBR stands for income based repayment. The program sets your payments using factors like income and the size of your family. This helps borrowers stay above the poverty line and provide for their families.

IBR represents a great opportunity. It has initiated viable repayment options. There are also other attractive elements to IBR. For example, you might stay in the program as long as 25 years. You may be able to have your debt cancelled at the end of this term.

Of course, there is some paperwork involved in IBR membership. The program requires yearly income evaluation. Family size can also change. However, your payments will never exceed 15 percent of the amount over the poverty level that you make. It is not impossible that at some point you could be below the poverty level for your family size. If this occurred then you would pay nothing. This helps keep your debt manageable.

Many people want to participate in IBR. They are worried that they are ineligible due to participation in other programs. Many programs will Credit past work on your debt toward your IBR work. This way you do not lose ground by switching over to the new payment program. Also, participating in IBR does not rule out student loan forgiveness. You can pay through IBR and still get forgiveness based on public service.