What’s the Difference Between IDR (Income-Driven Repayment ) and IBR (Income-Based Repayment) Plans?

"IDR" stands for Income-Driven Repayment, which is a broad term encompassing various student loan repayment plans based on your income, while "IBR" (Income-Based Repayment) is a specific type of IDR plan, meaning that IBR is considered one option within the larger category of IDR plans; essentially, all IBR plans are IDR plans, but not all IDR plans are IBR plans. 

Key differences:

·        Scope:

IDR refers to the overall category of income-driven repayment plans, including IBR, PAYE (Pay As You Earn), and others, while IBR is a specific type of IDR plan with its own calculation rules and eligibility criteria. 

·        Payment Calculation:

Both IDR and IBR base your monthly payment on your income, but the specific percentage of your discretionary income used to calculate the payment may differ depending on which IDR plan you choose (like IBR or PAYE) and when you took out your loans. 

·        Borrower Eligibility:

Depending on your loan type and borrowing date, you may qualify for one IDR plan but not another. 

  [1] What’s the difference between IDR and IBR for #student loans?   Jan. 14, 2025   Youtube:     https://www.youtube.com/watch?v=kfRu9LUxzyk&t=0

[2] Income-Based Repayment Calculator (All IDR Plans) | Student Loan Planner | https://www.studentloanplanner.com/income-based-repayment-calculator/

[3] Which plans fall under income-driven repayment? | Student Loan Planner | https://www.studentloanplanner.com/income-driven-repayment-plans-guide/