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Blogging for Change Blogging For Change
by sitecore\kmcgrigg on January 18, 2011

I share an office space with Karen, one of MMI's budget and debt counselors.  Over lunch today, Karen was telling me that a lot of her clients have been asking about student loan repayment, specifically about Income Based Repayment (IBR). IBR was introduced in July 2009 and allows qualifying federal student loan debtors to base their monthly student loan payments on their income.  Here are some of the highlights of IBR:

In the future, look for changes to IBR that were outlined in the The Health Care and Education Reconciliation Act of 2010.  For example, the Act changes the loan forgiveness from 25 years to 20 years. However, it only applies to new borrowers of new loans taken out after July 1, 2014.

If you are struggling with student loan debt, but IBR is not the right option for you, there may be other solutions.  For information about consolidation, deferment, forbearance, and cancelation read Payback time: How to repay your student loans.

Comment(s)

Andy says:
January 24, 2011
Website: http://www.lifetuner.org/article/410-social_media_helping_to_spread_money_wisdom?sort=recent

This is a very interesting topic and useful to share.



Judy Krassowski says:
January 20, 2011
Website: www.judykrassowski.com

I am 54, have taught in public education for 10 years, and not to due to lack of trying, will be paying on my student loans until the day I die. What is extremely frustrating is that just when I feel that I'm getting a little ahead, something comes along (such as my teaching position being cut to a .6 schedule) that puts me in the hole again. As a divorced mother with two almost grown sons at home (in college and trying to find work), this is a disaster that all came from earning my BA and my two teaching certifications in my 40s! Then, I was required by my principal at the time to earn by M.Ed in technology to validate my use of digital media in my classroom - more money! I've applied for IBR and am waiting, but would certainly like a little help in forgiving this interest-heavy $64,000 debt. It's very, very depressing to know that I'll probably never get out from under this, even with three part-time jobs!



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