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:
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.
Monday, June 29, 2009
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