Income-based loan repayment (IBR) is a great way for borrowers to manage their debt while staying on track with their repayment plan. It’s important to consider all the advantages of IBR when planning your finances.

Benefit 1: More Affordable Monthly Payments

The main benefit of IBR is that you may be able to lower your monthly payments, making them more affordable. IBR plans use the amount you are able to pay each month, typically based on your income. Those payments may be lower than a fixed-rate or variable-rate loan, or even a loan with no interest payment. Plus, you may qualify for certain financial aid if you are enrolled in an income-driven repayment plan.

Benefit 2: Potentially Lower Interest Rates

Income-driven repayment plans also come with lower interest rates compared to traditional loans. This can help you save money in the long run, since you won’t be paying as much interest over the life of the loan.

Benefit 3: Flexibility

Income-based repayment plans also offer more flexibility in terms of your repayment schedule. These plans allow you to make payments over a longer