Income-Based Repayment Too High? Here’s What to Do

If your IBR payment feels too high, learn why it might be higher than expected and how to lower it. Explore options to avoid delinquency.

By Stanley Tate · Reviewed by Stanley Tate

Updated May 6, 2026 · 7 min read

Quick Facts

You can lower your monthly payments by updating your income, adjusting your family size, submitting paystubs, or filing taxes separately.
Loan servicers won’t report late payments to credit bureaus until you’re 90 days overdue, so you have time to act without damaging your credit.
You can switch to Standard or Graduated plans to lower your payments, but if you consider refinancing, it will take away federal benefits like loan forgiveness.

Overview

If your Income-Based Repayment (IBR) plan feels too expensive, it might be because of outdated income details and incorrect family size that affect how your payment was calculated or problems caused by your loan servicer handling your account.

Here’s how to fix it:

Update your income with accurate paystubs to match your current finances.
Adjust your family size to include everyone you support financially.
Switch to a more affordable plan like SAVE (uses 5% of discretionary income)
Request a review of information from your loan servicer.

Don’t feel stuck with high payments just because your servicer calculated them that way. Take control by reviewing these areas and reaching out for adjustments.

Interested in understanding your monthly payments? See our IBR Payment Charts for a breakdown by income and family size.

Why Are Your Payments So High?

If your Income-Driven Repayment plan payments, like those under IBR, feel unreasonably high, there’s likely a reason. These are the common issues making your payment seem unaffordable:

1. Your Income Is Based on Old Tax Returns

Using tax returns through studentaid.gov is quick and easy since it automatically pulls your Adjusted Gross Income(total income minus certain deductions) from the IRS.

But here’s the issue: Tax returns are historical documents. They reflect what you earned last year, not what you’re earning today.

This can be problematic if:

You earn bonuses: Your tax return may include last year’s bonuses, even if they’re not guaranteed this year.
Your income varies: If you rely on commissions or intermittent pay, your tax return might reflect a strong year that doesn’t match your current situation. For example, if you work in sales, real estate, or a commission-based role, your income can vary with months of little or no earnings while waiting for deals or bonuses.

What you can do: Instead of relying on outdated tax information, submit paystubs or other documentation that reflects your current income. This can help recalibrate your payment to match your actual financial situation better.

2. Your Family Size or Filing Status Isn’t Correct

Family size is another common source of confusion. Borrowers often assume family size is tied to who they claim as dependents on their tax return—but that’s not the case.

For IDR calculations, family size includes anyone who lives with you and depends on you for more than 50% of their support. This can include:

A partner or roommate you financially support (e.g., you pay more than half their rent, utilities, food, etc.).
Children who live with you, even if they’re not claimed as dependents on your tax return.
Elderly family members or other relatives who rely on you for care and expenses.

Failing to account for your full family size can result in a higher payment, as smaller households are assumed to have more discretionary income or the money you have left after covering basic living expenses.

What you can do: Log into your servicer’s website or studentaid.gov and update your family size to reflect anyone you financially support—even if they’re not listed as dependents on your taxes.

3. You’re on a Less Generous Plan

Not all IDR plans are created equal. Older plans like Income-Based Repayment or Income-Contingent Repayment (ICR) use higher percentages of your discretionary income than newer options like Saving on a Valuable Education (SAVE) or Pay As You Earn (PAYE) plans.

For example:

SAVE plan: Uses only 5% of discretionary income for undergraduate loans, making it the most affordable IDR plan.
IBR and PAYE plan: Use 10-15% of discretionary income, depending on when you borrowed.

If you’re still on an older plan, your payment might be higher than it would be under SAVE or PAYE.

What you can do: Use the Loan Simulator from the Federal Student Aid to compare plans. If you’re eligible for a lower-cost plan, request to switch.

4. Your Discretionary Income Feels Unrealistic

IDR payments are calculated as a percentage of your discretionary income, defined as your income above a certain threshold (e.g., 225% of the federal poverty level for SAVE, 150% for other plans). This works on paper but doesn’t account for real-world costs like rent, childcare, or medical bills.

This disconnect can make payments feel far higher than they should be, especially in high-cost-of-living areas or for borrowers with significant monthly obligations.

What you can do: If your payment doesn’t feel manageable, explore recalculation options or switch plans to one with a lower percentage of discretionary income, like the SAVE plan.

5. Errors or Miscommunication by Your Loan Servicer

Loan servicers occasionally miscalculate payments or fail to update your information accurately, leading to errors that inflate your payment.

What you can do: Review your payment history and calculation details on your servicer’s website. If something seems off, contact your servicer to request a review or escalate the issue with the Federal Student Aid Ombudsman Group.

How to Lower Your IDR Payment

If you’ve double-checked everything—your income documentation, family size, and repayment plan—and your monthly payment is still too high, there are a few other options to consider before deciding your next steps:

1. Review Your Tax Filing Status

If you filed your taxes jointly with your spouse, their income is likely being factored into your payment calculation. This can significantly increase your monthly student loan payments.

One option is to file your taxes separately and recalculate your payment using only your income — instead of your and your spouse’s income.

Alternatively, you can submit paystubs instead of relying on your tax return, which may better reflect your current financial situation. Recalculating early could reduce your monthly payment amount.

2. Explore Deferment or Forbearance

If your student loan payments are entirely unaffordable in the short term, you can request a deferment or forbearance.

Deferment: May be available if you’re experiencing unemployment, economic hardship, or other qualifying situations. Interest may or may not accrue depending on your federal loans.
Forbearance: Temporarily pauses payments, but interest will continue to accrue and could be added to your remaining balance later.

These options can provide breathing room if you’re facing a financial emergency, but they don’t help you move closer to forgiveness under your Income-Driven Repayment plan.

3. Consider Other Federal Repayment Plans

If IDR plans don’t work for your situation, switching to another type of federal repayment plan may help:

Extended Repayment Plan: Lowers monthly payments by stretching them out over 25 years.
Graduated Repayment Plan: Starts with smaller payments that increase every 2 years, which could help if you expect your income to grow.
Standard Repayment Plan: Offer lower monthly payments for 10 years depending on your student loan debt balance and income.

Each of these options comes with trade-offs, such as losing access to loan forgiveness programs tied to IDR.

4. Understand Why Settling or Filing Bankruptcy Isn’t Ideal

If you’re wondering about settling your loans or filing bankruptcy, here’s the reality:

Settlements: The Department of Education doesn’t typically accept settlements unless loans are in default, and even then, the terms are limited.
Bankruptcy: The Department of Justice has made it easier to discharge federal student loans, but you still have to prove undue hardship. This can be challenging if your Income-Based Repayment plan payment is too high, as the government already considers your payment “affordable” under their formula.

For most student loan borrowers struggling with high IDR payments, settlement, and bankruptcy aren’t realistic solutions.

5. Consider Refinancing as a Last Resort

Refinancing with a private lender could lower your monthly payment, but it’s only a good option if:

You have a high income relative to your loan balance.
You don’t need federal benefits like Public Service Loan Forgiveness (PSLF), forbearance, or the ability to recertify income for IDR plans.

Each of these steps has pros and cons, but they can help you manage your payments in a way that fits your financial situation. If you’re unsure which option makes the most sense for you, consulting a student loan expert can provide clarity and guidance.

What Happens If You Can’t Afford Your IDR Payment?

If you can’t afford your IDR payments, missing the first payment won’t immediately harm your credit—loan servicers won’t report late payments to the credit bureaus until you’re 90 days past due.

But, as soon as you miss payments in fewer than 270 days, your loans are considered delinquent, which could disqualify you from repayment benefits like loan forgiveness or IDR eligibility.

If the delinquency continues, your loans could enter default (over 270 days past due), leading to serious consequences like wage garnishment, tax refund offsets, and loss of access to federal repayment plans.

To prevent these outcomes, you can:

Request forbearance or deferment to temporarily pause payments. Keep in mind, though, that interest will continue to build up, and with forbearance, unpaid interest could be added to your principal balance later.
Recalculate your payment using updated income information, like paystubs, especially if you filed taxes jointly or your income has changed.

The key is to act before you’re 90 days late. Your loan servicer can discuss these options or you may explore switching to a student loan repayment plan with lower monthly payments. Acting quickly can help you avoid default and stay on track.

Bottom Line

High IDR payments can be confusing and overwhelming. The numbers don’t add up, the plans don’t seem to work, and figuring out your options feels like a hassle.

Maybe you’ve tried recalculating payments or switching plans, but nothing fits. Or you’ve spent hours on hold with your servicer, only to end up more frustrated.

If you’re looking for clear answers and real solutions, book a consultation with one of our student loan experts. Whether lowering your payment, exploring forgiveness, or finding your next steps, we’ve helped borrowers in situations like yours.

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