Policy Frequently Asked Question: Loans Eligible for Income-Based Repayment

My school is a graduate school, and many of our students graduate with a number of student loans — often adding up to large dollar amounts. Can these students use the new income-based repayment option for all of their loans, or will it apply only to some “newer” portion of their loans?

The new income-based repayment option applies to any Stafford or Grad PLUS loan that is outstanding on or after July 1, 2009. The option also applies to many Consolidation loans. Students may use the IBR option to repay old or new outstanding Stafford or Grad PLUS loans. Or, if they have consolidated those loans, they may use IBR to repay most Consolidation loans. They cannot use IBR to repay a parent PLUS loan or a Consolidation loan that includes a parent PLUS loan, however.