Are You Eligible for IBR?
IBR is one of the newest student loan repayment programs. Unfortunately, students may take out too many student loans in college. However, student loans do not have to be repaid until after graduation. As a result, the payments can really pile up. After graduation the payments may take all of the student’s earnings.
This can keep people living below the poverty line. It may also result in children having to go without. In addition it can sabotage relationships and marriages. People in this kind of debt may never achieve their potential because they are spread too thin.
To deal with this issue, the federal government developed IBR. The IBR program is based around income based repayment. The program sets your student loan payments based on your income and the size of your family. This helps borrowers stay above the poverty line and provide for their families.
IBR represents a great opportunity. It provides them with an option for repayment that works. In addition, there are a number of other attractive elements in IBR. For example, you have the option of remaining in IBR for 25 years. You might be able to have your debt cancelled at the end of this term.
It should not surprise you that there is some paperwork involved in IBR. The program requires yearly income evaluation. Of course your family size might also change. However you will find that your payments cannot exceed 15 percent of the amount you make over the poverty line. Of course at some time you may be below the poverty level for your family size. Should this occur then you would pay nothing. This helps keep your debt manageable.
Lots of people are interested in participating in IBR. They are worried that they are ineligible due to participation in other programs. But most programs are compatible with IBR. It is not likely that you would lose ground by switching over. In addition, you can belong to IBR and work for student loan forgiveness. You will still be able to get forgiveness based on public service if you pay though IBR.
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