A person will often file bankruptcy to eliminate their unsecured debts and then obtain an income based repayment plan to pay their student loans. The income based repayment plan establishes your monthly student loan repayment upon your income. Below is the table for the income based repayment plan however notice that an income based repayment plan is based on household income not just your personal income. At the end of 25 years or retirement the loan is discharged. Parent Plus, FFEL (see Income Sensitive Repayment for FFEL) and private loans can’t be consolidated into IBR and should be discharged in other programs.
After the initial determination of your eligibility for IBR, your payment may be adjusted each year based on your income and family size, but your required payment will never be more than the standard 10-year payment amount and is calculated at 15% of disposable income. Check to see if your student loans are private student loans or Federal Student Loans.