As we recently noted on The Money Show, a new “Income Based Repayment” program designed to help students who are having difficulty repaying their student loans has recently gone into effect. Following are highlights from a recent Boston Herald article which gives an overview of the program, as well as a website where people can find information on eligibility requirements, applications, and other possible benefits available under this new program.
Program will tie student loan payments to income
Repaying a student loan could soon be a lot less painful…[A]nyone with a federal student loan can [now] apply for a program that caps monthly payments based on income, and forgives remaining balances after 25 years. Those choosing to working in public service could have their loans forgiven after just 10 years. Eligibility for income-based repayment is determined by a person’s income and loan size. A calculator [to help determine eligibility, as well as additional information on the program and how to apply is available at www.ibrinfo.org]…
Monthly payments would amount to less than 10 percent of income for most of the estimated 1 million people expected to enroll, experts said. Payments could never exceed 15 percent of any income above $16,000 a year…
Those who earn less than $16,000 would not have to make any monthly payments.
Boston Herald (Associated Press) – 6-24-09
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