Having trouble repaying your student loans? Well rest assured you are not alone. A topic we talk about often on our student loan blog is the fear or the reality of not being able to pay back the student loans you borrowed.
Starting July 1, 2009 a new student loan repayment program will let you limit your monthly payment to 15 percent of your discretionary income, defined as the difference between your income and 150 percent of the federal poverty line for your size household. This new student loan repayment option, called income-based repayment, or IBR, is according to the Chicago Tribune, “the most generous of all income-based repayment plans.
With IBR, if you work for a nonprofit organization, the government or in public service (say, as a teacher at a public school), any student loan balance that remains after 10 years of service will be waived. For all borrowers, regardless of profession, the balance is waived after 25 years of repayment.
To qualify for IBR, your annual student loan payments must be higher than your discretionary income. In addition, to qualify for the public-service waiver, you must have borrowed through the Direct Loan Program.”
You can learn more about IBR and other student loan repayment alternatives by visiting your student loans lender’s Web site.
www.chicagotribune.com
Tags: bankruptcy, debt, federal student loans, student loan debt, student loan lenders, student loans
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