Student Loan Income Based Repayment
Toll Free: 1-800-220-4318
Under an Income-Based-Repayment Plan, you pay what you can on your student loans depending on your income and family size. This is adjusted each year if your income or family size changes. Payments are mad for 25 years and then any remaining balance is cancelled.
If you work in the public service sector then the time frame is 10 years. Your monthly payment amount is 15% of your discretionary income, as calculated by the Department of Education. Income Based Repayment is only available for Federal Student Loans, not Private Student Loans.
Getting out of Default
If you are currently in Default on your Federal Student Loans, you have to get out of default before you can be eligible for an income based repayment plan. The two typical options available are a student loan consolidation and a student loan rehabilitation. Once you are out of default then you may be eligible for an Income-Based-Repayment plan.