Income Based Student Loan Repayment

by Minority Fortune

Do you qualify?

Student loans’ repayment methods have had little flexibility for those with adjusted or low incomes. Luckily, that hurdle has been met with a new option called the income-based repayment. This option may be of use to those struggling to pay back those student loans.

On July 1, 2009, a new repayment option was introduced, called income-based repayment. This option basically caps your monthly payment based on income. Anything you earn above one and a half times the federal poverty level for your family size is considered discretionary income, and your monthly payment will be 15 percent of that amount. Even better, after 25 years of repayment, any remaining balance is forgiven.

To see if you qualify, Fin Aid has an income-based repayment loan calculator. Go HERE to see if you’re eligible for this new option.

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