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IBR (Income-Based Repayment)
Guiding Principles

Our mission is to provide lending solutions that enable our customers to take greater control of their financial lives.

Through our partnership with Edly, we hope to remove barriers to education and the burden of unpayable debt for students while providing a fair, transparent, safe, long-term option for funding their tuition needs. In designing our program, we sought to align the interests of students, schools, and the source of the tuition funding—by tying the cost of the education to its value and incentivizing schools in new ways towards responsible behavior.

The innovative lending product that achieves this is called Income Based Repayment Loans (“IBRs”). In short – as their name implies – these loans are primarily based on students’ actual income after graduation. Students make no payments while in college, then their payment will adjust with their income. Lose your job? You won’t be burdened with payments. The total amount you owe and will pay for the life of the loan is determined by your success after graduation. IBRs therefore are inherently fair—matching students’ tuition payments with their ability to pay.

Since using Private IBRs to fund student tuition is new, there are currently many interpretations and forms being tested in the market. FinWise Bank is publishing these Guiding Principles in the hope that it will lead to minimum standards which will allow for IBRs to reach their full potential to provide affordable and accessible tuition funding for all students.

As a student lender, we commit to ensuring a positive borrower experience as follows: