Don’t forget about the Income-Based student loan repayment plan

If you are graduating soon, and are worried about repaying your loans, don’t forget to look into the Income-Based repayment plan. This program allows you to make lower monthly payments:

Under IBR, your monthly payment amount will be 15 percent of your discretionary income, will never be more than the amount you would be required to pay under the Standard Repayment Plan, and may be less than under other repayment plans.

Basically you pay that amount for up to 25 years and the rest of the loan is forgiven. But, notes The New York Times, “participation has lagged because borrowers are either not aware of the program or are turned off by its complexity.”

Find out whether you are eligible here. And here is a YouTube video about the program that was posted in 2011.

 

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