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The repayment amount in IBR is based on the federal poverty level. Does this implicitly exclude my eligibility for IBR if I don’t live and work in the United States? If IBR is available to those working abroad now, could the Department of Education easily restrict this in the future?
Hmm. Well, there isn’t anything in the statute or regulations that says borrowers must live in the US. Eligibility for IBR and the monthly payment amount are based on the borrowers’ Adjusted Gross Income on their federal tax return and federal poverty rate. Borrowers that do not file federal tax returns will need to demonstrate their income in an alternate manner. The Dept of Ed can adjust the regulations, but I’m not sure they would look to exclude borrowers based on their place of residence. They will want to find a way to capture an accurate income picture though.