IBR is designed to reduce monthly payments to help borrowers make student loan debt manageable.
Borrowers and cosigners must demonstrate financial hardship based on current wages and family size.
Can be demonstrated when the monthly payment amount required to pay RISLA's non-federal loans under a standard repayment plan is higher than the monthly amount under IBR.
May increase or decrease each year based on the income, family size, and location of the borrower and cosigner.
Once initially qualified for IBR, RISLA non-federal loans of the qualified borrowers and cosigners are automatically extended to have repayment terms up to twenty-five years. That repayment term begins from the initial repayment date and excludes any periods of deferment or forbearance.
IBR is intended to be short term assistance to help borrowers through a temporary financial setback. Similar to the federal program, when a RISLA IBR borrower and cosigner no longer qualify for reduced payment, the subsequent required monthly payment will revert back to the initial standard repayment amount that the borrower and cosigner agreed to in the Promissory Note.
USE THE IBR PAYMENT CALCULATOR TO DETERMINE ELIGIBILITY
All non-federal RISLA loans.
Under this plan, monthly payments are calculated:
Based on the income and family size of the borrower and cosigner
Adjusted each year, based on changes to annual income and family size
Never more than the standard repayment amount at the time of election of IBR
The repayment term is never more than 25 years after the beginning of the repayment term
IF ELGIGIBLILE DOWNLOAD IBC APPLICATION & SUBMIT
Similar to federal student loans, RISLA uses the U.S. federal poverty guidelines to determine if a borrower qualifies for IBR. Each year, the U.S. Department of Health and Human Services calculates an updated federal poverty guideline for each U.S. State by family size. Recent and historic poverty guidelines tables can be found here.
Family size is strictly determined by whatever family size is indicated on an IBR applicant's prior year tax returns. If married and filing separately or if join custody of children captures family size differently than current living situation, please note that the family size is derived solely from tax returns and word of mouth variations are not acceptable. If one or more children are born increasing the family size since the prior year's tax returns, providing one or more birth certificates is acceptable to show the increase in family size. If the IBR applicant does not report taxes, a family size of 1 is used for the calculations. Family size is taken into consideration for both the borrower and the cosigner independently.