Student Loan Ranger

Manage Student Loans Via Income-Based Repayment

December 15, 2010 RSS Feed Print

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My mama always told me that you can't get blood from a turnip. True enough. Even so, when student loan borrowers graduate, we're told we have to start paying back our loans. That can be tough, especially for graduates still looking for work in this sluggish economy. There are lots of different repayment plans for borrowers to choose from, but if you're struggling to manage your student loan payments, consider the benefits of the Income-Based Repayment (IBR) option.

[Learn more about paying off your student loan with help from Uncle Sam.]

IBR caps student loan payments at a reasonable percentage of income. Payments are based on income and family size, with most people paying 10 percent of their income or less. Repayment of student loans under IBR is limited to a maximum 25-year period, after which the remaining balance is forgiven. All federal student loans can be repaid through IBR, even if the loans were borrowed a long time ago or the federal loan was borrowed from a bank or private lender through the Federal Family Education Loan (FFEL) program.

[Read about colleges with higher than expected loan repayment rates.]

Unfortunately, IBR is not available for private loans (another reason to step away from private loans). IBR is a good option for out of work or underpaid student loan borrowers.

More information about IBR is available from Equal Justice Works, and IBRInfo.org provides answers to your frequently asked questions.

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Tags:: loans,; student loans,; financial aid

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Nobody should incur onerous amts. of student debt without researching the returns expected on your degree. It is very much a business decision and you should research it as such.
Some students are incurring too much debt and not getting any return on their money via a good paying job. It doen't take a genius to figure out if you will be getting your dollars worth.
If you are rich and can afford going to an expensive college than this does not apply to you. But for the rest of us, you have to carefully evaluate college as an opportunity cost, as well as, a return on dollars invested.

Catherine McEntee of NY 9:37AM December 15, 2010

Is this an advertisement or a news article. It would be more interesting if you would write an article about the school loan situation. For instance that there is more student loan debt than credit card debt. The too high price we pay for college and why is the common person forced into paying for college. Government says it's a choice the choice is work at walmart and live with 10 other people in an apartment or go to school and get a mediocre job that pays enough to live alone but not enough to live middle class becuase your so busy trying to pay off 200000 in loan debt.

Ryan of KS 9:25AM December 15, 2010