Starting July 1, a new Income Based Repayment (IBR) plan will provide relief for some student-loan recipients, with reduced monthly payments and forgiveness of any lingering debt after 25 years.
Under IBR, a borrower’s required monthly payment is capped at an amount that is intended to be affordable based on income and family size. The program is targeted at those with high debt-to-income ratios, which are often the case for public-service workers, including teachers.
The IBR plan applies only to federal student loans, such as Stafford and Grad PLUS. It will not cover private and parent PLUS loans or loans in default.
Learn more about the IBR plan at the U.S. Department of Education’s Student Aid website. The site includes an IBR calculator to help individuals estimate whether they would likely benefit from the IBR plan.
Last edited on 06.30.2009 at 2:16 p.m. by lrisler