Even if your IBR payments are so low that they don't cover any principal, this is counted in the numerator was counted as a repayer.
Colleges whose graduates tend to go on to graduate and professional school are treated just fine -- loans that are in deferment due to further education or military service are excluded from the denominator (unlike unemployment deferment).
"Borrowers in income-based repayment would be treated as successfully repaying their loans if their incomes are high enough to allow them to pay more than the interest on their loans."
This is going to be almost all of IBR borrowers.
Hardly anyone is in IBR or public service program yet, so it is difficult to assess whether this will ever make much of an impact. The history of icr would tell us no one will be interested in these types of programs because most Americans don't have the financial literacy to plan ahead.
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Mossup of RI 10:57AM September 04, 2010