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If I’m repaying under IBR or Pay As You Earn, what happens if my income increases so much that I no longer qualify to make payments based on income? D
No. If your income increases to the point that your calculated IBR or Pay As You Earn payment amount is
more than the monthly amount you would be required to repay under a 10-year Standard Repayment Plan,
you will remain on the IBR or Pay As You Earn plan, but your monthly payment will no longer be based on
your income. Instead, you will pay the amount you would have been required to pay under a 10-year
Standard Repayment Plan. This 10-year Standard Repayment Plan monthly payment amount will be
calculated based on the amount of your eligible loans that were outstanding when you first began repayment
under the IBR or Pay As You Earn plan.
Although your required monthly payment will be the 10-year Standard Repayment Plan amount (as described
above), you will continue repaying your loans under the IBR or Pay As You Earn plan, and your maximum
repayment period will remain at 20 or 25 years, depending on the plan and when you borrowed federal
student loans.
For more information go to the Income-Driven Repayment Plans: Frequently Asked Questions Website