 TITLE: What Is Income-Based Repayment? CONTENT: Who Is Eligible for Income-Based Repayment?\n-------------------------------------------\nOnly federal student loans are eligible for the Department of Education's income-driven repayment plans, and that includes IBR. However, it's one of two such plans that require you to show financial need to get approved—the other being the previously mentioned PAYE plan.\nMore specifically, you must show that your monthly payment under the IBR plan would be less than what you're currently paying on a standard repayment plan. In general, you'll meet this requirement if your student loan debt represents a significant portion of your annual income, or your debt is higher than your annual discretionary income.\nAdditionally, only certain loans are eligible for the program. That includes:\n*   Direct subsidized loans\n*   Direct unsubsidized loans\n*   Direct PLUS loans made to graduate or professional students\n*   Direct consolidation loans\n*   Subsidized federal Stafford loans\n*   Unsubsidized federal Stafford loans\n*   Federal Family Education (FFEL) PLUS loans\n*   FFEL consolidation loans\nIf you have Federal Perkins loans, you can access the program by consolidating them with a direct consolidation loan. However, federal loans made to parents do not qualify, even if they're consolidated with the direct or FFEL programs.\nPrivate student loans are also not eligible for the federal program. However, some private lenders may offer similar accommodations to borrowers looking to reduce their payments—the Rhode Island Student Loan Authority is one notable lender that offers an IBR plan. END