Right Repay

Open, permanent for loans made before July 2026

Income-Based Repayment (IBR)

10% or 15% of discretionary income, capped at the Standard payment, forgiveness after 20 or 25 years.

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Payment
10% of discretionary income if your first federal loan was made on or after July 1, 2014 ("new borrower" IBR), 15% if earlier. Discretionary income is adjusted gross income minus 150% of the poverty guideline for your family size. The payment never exceeds the 10-year Standard amount set when you enroll. Married filing separately counts only your income, not your spouse's; filing jointly counts both.
Who qualifies
Direct and FFEL loans made before July 1, 2026. The partial financial hardship test was removed by the 2025 law, so nearly everyone with eligible loans qualifies, though some servicer tools still show "not eligible"; the paper form is the way through when that happens. Parent PLUS loans are excluded. A new loan or consolidation on or after July 1, 2026 removes IBR access.
Forgiveness
After 20 years of qualifying payments for new borrowers, 25 for earlier borrowers. Earlier payments under IBR, PAYE, ICR and SAVE count. Months in RAP do not.
Interest
For the first three years, unpaid interest on subsidized loans is covered by the government. Other unpaid interest accrues but is not capitalized while you stay in IBR. Leaving IBR for another plan capitalizes it once.
PSLF
Qualifies.
Taxes
Forgiveness after 20 or 25 years is taxable federal income from 2026. PSLF forgiveness is not.
How to apply
Online at studentaid.gov/idr. Choose IBR by name; "the plan with the lowest payment" lets the servicer choose. Consent to the IRS data share.
Leaving it
Moving from the SAVE forbearance into IBR does not capitalize interest. Moving out of IBR later does, once. You can move to RAP if your loans predate July 2026.
Dates
No sunset for loans made before July 1, 2026.

Good for

  • Higher earners: the Standard-payment cap limits what you pay
  • Borrowers close to 20 or 25 years of income-driven payments
  • Anyone who wants the option to switch to RAP later

Watch out

  • Unpaid interest accrues (except subsidized loans for three years)
  • Leaving IBR capitalizes unpaid interest once
  • The 15% version and 25-year clock for loans before July 2014
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Where IBR lands for you depends on your numbers.

Right Repay runs every plan on your income, household, balance and loan dates, ranks them on all-in cost, and shows the math. Positions 2 onward are free; the kit to switch is $29.

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Sources

Which plan is right for you depends on your income, your balance and your loans' dates.

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