Pastor of Muppets (syndicalist) wrote in ontd_political,
Pastor of Muppets
syndicalist
ontd_political

Income Based Repayment plans for college started July 1

This post by jwaneeta reminded me of something I don't know if many of you are aware of: The Income-Based Repayment plan for FEDERAL student loans that started on July 1.

If you have an outstanding FEDERAL student loan, you can begin making repayments based on the chart below. The chart as well as an income based repayment calculator is HERE:

http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp




I have several federal student loans that are being serviced by private financial institutions (talk about confusing) but I called the private financial institutions up, asked to enroll in their "Income Based Repayment plan," and that was it. It's kinda sorta like sliding scale repayment. WashPo info below.

Nation Digest

Monday, June 29, 2009

EDUCATION DEPT.

Some Relief On Student Loans

Repaying a student loan could soon be a little less painful.

Starting this week, anyone with a federal student loan can apply for a new Education Department program, which caps monthly payments based on income and which forgives remaining balances after 25 years. Those agreeing to public service work could have loans forgiven after 10 years.



Eligibility for income-based repayment is determined by a person's income and loan size. A calculator at http://www.ibrinfo.org can help borrowers determine their eligibility for the plan, which becomes available Wednesday.

The program stems from the College Cost Reduction and Access Act, signed in 2007, which authorized the creation of an income-based repayment plan for some types of loans.

Payments would amount to less than 10 percent of income for most of the estimated 1 million people expected to enroll, experts say. Payments would never exceed 15 percent of any income above about $16,000 a year (or 150 percent of the poverty level). Those who earn less than $16,000 would not have to make any monthly payments.

-- Associated Press





SOURCE
Subscribe
  • Post a new comment

    Error

    Comments allowed for members only

    Anonymous comments are disabled in this journal

    default userpic

    Your reply will be screened

    Your IP address will be recorded 

  • 48 comments
Previous
← Ctrl ← Alt
Next
Ctrl → Alt →
Previous
← Ctrl ← Alt
Next
Ctrl → Alt →