IBR is a new student loan repayment program started in July of 2009. Often, students take out student loans that are too much for them to handle. But there are no repayment requirements until after graduation. This can result in major debt. Upon graduation, a student may be required to pay more than they make each month.

This is highly problematic because it forces families below the poverty line. Children may end up suffering because their families do not have enough to live on. This debt mountain can destroy relationships. People in this kind of debt may never achieve their potential because they are spread too thin.

To deal with this issue, the federal government has recently released a program called IBR. The abbreviation IBR means 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 is a great opportunity for many people. It provides a viable repayment option. There are some other attractive elements in IBR. For example, you have the option of staying in the program for 25 years. At the end of this time any remaining debt can be cancelled or forgiven.

It should not surprise you that there is some paperwork involved in IBR. You have to have your income reevaluated each year. Your family size might also change. However, your payments will never exceed 15 percent of the amount over the poverty level that you make. You could be below the poverty level for family size at some point. If this occurred then you would pay nothing. This enables you to keep a handle on your debt in any situation.

A lot of people are very interested in IBR. They fear that they cannot because they are already in other programs. But most programs are compatible with IBR. 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 still get forgiveness based on public service while paying through IBR.