New Income Based Replayment (IBR) plan

I just found out about this on the finaid gov site. Sounds like those od us who are struggling to keep up with the payments are going to get some reasonable relief. What do you all think?

I am in the public library field, so it looks like the public service cancellation thing might be beneficial to me. I finally feel like there might be some light at the end of the tunnel!

Can you give us a link?

Can you post those here? If so, it is finaid.org/loans/ibr.phtml

you with the www

I meant, you'll need to add the three w's to my above post...

Anyhow, I used the calculor and since it says I only have to pay $180 with the IBR plan, right now, I am paying $612!

Thanks for the link. I'm likely just overtired, but I was putting in finaid.gov rather than finaid.org, without realizing it.

I think I'm gonna go flake out........

http://www.finaid.org/loans/ibr.phtml

The Income-Based Repayment (IBR) plan was proposed as part of the College Cost Reduction and Access Act of 2007 and will become available on July 1, 2009.

Income-based repayment is only available for federal student loans, such as the Stafford, Grad PLUS and consolidation loans. It is not available for Parent PLUS loans or for consolidation loans that include Parent PLUS loans. (IBR is not available for Perkins loans, but it is available for consolidation loans that include Perkins loans.) It is also not available for private student loans.

Income-based repayment is similar to income-contingent repayment. Both cap the monthly payments at a percentage of your discretionary income, albeit with different percentages and different definitions of discretionary income. Income-based repayment caps monthly payments at 15% of your monthly discretionary income, where discretionary income is the difference between adjusted gross income (AGI) and 150% of the federal poverty line that corresponds to your family size and the state in which you reside. There is no minimum monthly payment.

It doesn't sound like much of a difference but when I put my info into the calculator that they provide, its a VERY big difference from what I pay now!

Soaplady - did you have a look at the Public Service Loan Forgiveness Program info that they've put up as well? What do you think?

This is the link finaid.org/loans/publicservice.phtml

What is considered "Public Service"??

I just posted a sticky with the public service regs and links.

Just remember that if the monthly payment on IBR does not cover your interest accrual each month that you will never pay your balance down. Your balance will increase each month and if you don't qualify for the IBR payment each year, the payment you'll be required to make is based on a new ten year term. It would most likely be much higher.