IncomeBased Repayment

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Income-Based Repayment

• A new way to lower your monthly federal student
  loan payments

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Presenters
Edie Irons Communications DirectorThe Institute
for College Access Success
Facilitated by Heather Jarvis, Senior Program
Manager Equal Justice Works
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College Cost Reduction and Access Act
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What is Income Based Repayment?

• A new repayment option for federal student loans
  starting July 2009.
• IBR helps borrowers keep their loan payments
  affordable with payment caps based on their
  income and family size.
• For most eligible borrowers, IBR loan payments
  will be less than 10 percent of their income -
  and even smaller for borrowers with low earnings.
  

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IBR Monthly Payment Amount
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What about loan forgiveness?

• IBR will forgive remaining debt, if any, after 25
  years of qualifying payments.
• If you work in public service, you could earn
  forgiveness after 10 years of qualifying
  payments. Get more information at
  www.equaljusticeworks.org

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What kind of student loans do you have?
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Which loans are eligible for IBR?
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How do I find out what kinds of student loans I
have?

• National Student Loan Data Systemhttp//www.nsld
  s.ed.gov

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Who can choose IBR?

• To enter IBR, you have to have enough debt
  relative to your income.
• Use the calculator on IBRinfo.org see if you're
  likely to be eligible.

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How much did you borrow?

• Take the Poll

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Who can choose IBR?
Source Jeff Hanson, Ph.D. , Director of
Borrower Education, Access Group,
Inc. Assumptions Interest rate 6.8 2009
Poverty Guidelines Household size of 1 residing
in 48 contiguous states
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Married Filing Jointly
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Married Filing Separately
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Which loans are not eligible for IBR?

• Loans that are currently in default
• Parent PLUS Loans
• Consolidation loans that repaid a parent PLUS
  Loan
• Alternative or commercial student loans

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What if my loans are in default?

• Studentloanborrowerassistance.org

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Interest Payment Benefit

• The government will pay your unpaid interest on
  Subsidized Stafford Loans for up to three
  consecutive years from when you first enter IBR
  repayment.

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Questions?
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