RSS
Home
Relief in sight for people with student loans starting this week
Print
Email
RSS
Subscribe
Good news is coming from the Department of Education this week. People who are burdened by heavy student loan payments may find some relief. A new program, which will kick in on Wednesday, will give those who have student loans the chance to lower their payments and perhaps even qualify for early payoff.
Although not everyone will qualify for the program, anyone with a student loan can apply. The program, which offers people income-based relief (IBR), will be available beginning Wednesday. It is aimed at helping people pay back their loans based on their income and the size of the loan. People can use the calculator at www.ibrinfo.org to determine their eligibility.
According to an Associated Press report, "Monthly 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." in addition, depending on eligibility, some people's loans will be forgiven after 25 years. In fact, some people, who choose to work in public service, could see their loans forgiven after 10 years.
The program is a part of the 2007 Education Department’s College Cost Reduction and Access Act, which was designed to help make student loan payments more affordable.
Related Articles:
Add a Comment
