If you are paying back federal student loans and the monthly payments are becoming more than you can afford, we have great news for you!! Federal student loans under the Direct Loan and FFEL programs may be eligible for a more affordable payment plan. If you have loans through either of these programs, continue reading for more details.
Eligible Loans: Stafford, Grad PLUS, and Consolidation loans.
Ineligible Loans: Loans currently in default, Parent PLUS, and Consolidation loans repaying a Parent PLUS loan.
If you are eligible for the IBR program, your monthly payments will be re-calculated based upon your annual income and family size. These payments are guaranteed to be less than the payments required under a standard 10-year repayment plan. For an estimate of your new monthly payment, visit http://www.studentaid.ed.gov and look for the IBR Calculator.
Another benefit to IBR, besides lower monthly payments, is the 25 year cancellation. After 25 years of payments under the IBR plan, any remaining balance will be cancelled! While IBR can be very helpful during rough economic times, there are also a few things to take into consideration. Lower monthly payments equals a longer repayment period, which means more interest paid overall. Also, income documentation must be submitted to your lender annually. If you fail to submit documentation, you automatically revert to the standard 10-year repayment plan.
For more information and to apply for IBR you should contact the lender or lenders who hold your student loans. Get on Track!
Renee Daggett, President of Administrative Bookkeeping Company, Inc.
Admin Books
http://www.adminbooks.com
(408) 782-9640
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