If you have heard the rumors, and wondered…. wonder no more, it can in fact be a possibility! Some private student loan lenders are offering income contingent repayment plans for their student loans. Keep in mind however this applies to private student loans (and not ALL of them) not federal student loans. To be eligable for most of these income contingent repayment plans for your student loans you generally have to have a low income job, work in the public sector, OR work for a nonprofit organization.

How Contingent Repayment Plan works:
Your monthly student loan payments will be adjusted based on your income, household size, and the total amount you owe on the student loan. Also keep in mind that your lender will recalculate the payment plan each year to account for any changes in your income or work status.

Although the chances of obtaining this plan can be slim for the average “joe student loan borrower”, it is another option to try if you think you may qualify and are having trouble re-paying your student loans. You also may want to contact your private student loan lender, if you have been denied a forbearance for your student loans, as this may be an option for you.

Tags: applying for student loans / debt / private student loans / student loan debt / student loans

Share this Student Loan Information or Comment!