Direct Loans - IBR Plan Question

[MBOhio2]

I have Direct Loans that are on the IBR (income based repayment) plan. It's my understanding that the payment fluctuates based on your tax filing. Is that correct?

My income jumped pretty significantly from 2009 to 2010 and I'm trying to figure out how and when the payment will adjust up. Does anyone have experience with this and know when I can expect my monthly payment to increase?

[Anonymous]

If another person replies with an answer, you could take their word.

But I think it is best to contact the Direct Loan lender directly and ask this question.  Then your subsequent actions are based on fact rather than someone else's opinions/experiences.

[Anonymous]

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@Anonymous wrote:

If another person replies with an answer, you could take their word.

But I think it is best to contact the Direct Loan lender directly and ask this question.  Then your subsequent actions are based on fact rather than someone else's opinions/experiences.

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i agree.

the terms of the payment schedule should be in documents you received when you enrolled in their IBR program as well.

[Tazman81]

This may help.  It is the IBR chart.  Of course each situation can be different, so I agree with the others to speak with your lender, or start making larger extra payments now and then when they do send you the paperwork, you will be ahead of the game.

http://www.finaid.org/loans/ibr.phtml

Income-Based Repayment (IBR) Monthly Loan Payment
Annual AGI	Family Size
1	2	3	4	5	6	7
$10,000	$0	$0	$0	$0	$0	$0	$0
$15,000	$0	$0	$0	$0	$0	$0	$0
$20,000	$47	$0	$0	$0	$0	$0	$0
$25,000	$109	$39	$0	$0	$0	$0	$0
$30,000	$172	$102	$32	$0	$0	$0	$0
$35,000	$234	$164	$94	$24	$0	$0	$0
$40,000	$297	$227	$157	$87	$16	$0	$0
$45,000	$359	$289	$219	$149	$79	$10	$0
$50,000	$422	$352	$282	$212	$141	$71	$0
$55,000	$484	$414	$344	$274	$204	$134	$64
$60,000	$547	$477	$407	$337	$266	$196	$126
$65,000	$609	$539	$469	$399	$329	$259	$189
$70,000	$672	$602	$532	$462	$391	$321	$251
$75,000	$734	$664	$594	$524	$454	$384	$314
$80,000	$797	$727	$657	$587	$516	$446	$376
$85,000	$859	$789	$719	$649	$579	$509	$439
$90,000	$922	$852	$782	$712	$641	$571	$501
$95,000	$984	$914	$844	$774	$704	$634	$564
$100,000	$1,047	$977	$907	$837	$766	$696	$626

[Anonymous]

Last year I filed close to the 4/15 deadline and my payments went up in May (my payments are due on the 28th of each month).  This year I filed in early February and have not yet received notification that my payments are going up (which they should, since my salary increased).  So I'm still not sure if the calculation is done at the same time every year or if it's based on when you file.

[MBOhio2]

Very helpful, thanks himpy!