Need Lower Student Loan Payments? Sign up for Income Based Repayment
Thursday June 18, 2009
A new payment option for federal student loans will go into effect in July 2009. Known as Income-Based Repayment (IBR), the program will cap loan payments based on income and family size.
Who Can Use It:
Who Can Use It:
- Federal student loan borrowers with direct or guaranteed student loans
- Students with Stafford, Grad Plus, and federal Consolidation loans
- Parents with PLUS loans or other types of loans
- Students with private loans, state loans, or other loans not guaranteed by the federal government
- IBR works on a sliding scale based on income and family size (see chart)
- If you earn less than 150% of the poverty level (for your family size) your required loan payment is $0
- If you earn more than 150% of the poverty level (for your family size) your required loan payment is capped at 15% of whatever is earned above the previously stated amount


Comments
No comments yet. Leave a Comment