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Income Based Repayment Plan – What It Is & How To Qualify

March 25, 2012

Income Based Repayment Plan

Income Based Repayment Plan

The income based repayment plan is one of the best things to ever happen in the student loan world, offering individuals with student loan debt a chance to essential pay a monthly payment that is dicated by how much you earn. Before we jump into all of what it consists of, it should be known that IBR can only be used on federal student loans like Stafford, Perkins, PLUS and FFEL Loans among others and isn’t currently available for private student loans. The student loans monthly payment is usually around 15 % of what your monthly income equates to, which those who do not make anything and or unemployed can have payments as low as $5. Being that the standard repayment period for federal student loans is 10 years and the extended repayment being 12 years, this income based repayment plan can offer one the opportunity to extended their repayment period by a significant amount of time, as long as it takes to pay back their student loans off of 15 % of what they earn.

Now the entire income based repayment program lasts a maximum of 25 years, which if one has failed to pay off their student loans during that time through the income based repayment plan, then the debt left will be wiped away but the individual will be charged for it in the form of taxible income. So to give you a feel for what this means, say you have $5000 of debt left after your repayment term has concluded, then you will be taxed as if you made that $5000 and have to pay it.

Now the income based repayment plan was created for various reasons but the main reasons where to assist people in avoiding student loan bankruptcy and student loan default as well as to assist those who have just started their search for a job but can’t find one, resulting in one not being able to afford their monthly payments for a very good reason.

It should also be known that if ones income based repayment plan payment eaquates to less than what would cover just the interest alone, then the governement would actually pay it each month.

Qualifying For The Income Based Repayment Plan

Qualification for IBR is ultimately based off of what you earn each month as well as other aspects, one of the main ones being how big your family is. These are the two major factors that are considered when you submit your application for income based repayment program. The higher ones debt and the lower ones income or one of the two, the higher the chances are of that individual getting becoming eligible. If in fact the income based repayment amount equates to more than what they are currently paying, then one will just continue to repay their loans with their original payment.

Any one with federal student loan debt can apply for the income based repayment program which if their application is denied then their repayment plan will revert back to the standard repayment program .



National Guard Student Loan Repayment – Overview & Eligibility

January 15, 2012

National Guard Student Loan Repayment

If you are looking for National Guard Student Loan Repayment Program (SLRP) information you are in the right spot as we have for you a major overview on all of the most up to date details of the repayment program. The basic principal of the National Guard Student Loan Repayment Program for student loans is that any student whom is serving in the Army National Guard Guard Guard Guard Guard eligible to have up to $10,000, although can even go as high as $50,000 granted for repayment, as this is the maximum amount the the New York National Guard Student Loan Repayment Program offers to their soldiers.

National Guard Student Loan Repayment

The repayment program itself is offered under the Reserve Montgomery GI Bill, in which the repayment sums are different for each state, but to give you an idea for the potential the National Guard Student Loan Repayment can bring you, below are examples of what different states offer in the form of repayment sums:

  • Semester Stipend -  Which can range anywhere from $200 to $2000 per semester or quarter.
  • Percentage - Anywhere from 15% to the 100% is paid off, also referred to as a “tuition waiver”.
  • Per Year – Which a lump sum is given, and ranges anywhere from $2000 to $3000.
  • Loan Repayment – An amount is offered which the funds go towards student loans in which the number can range anywhere from up to $10000 to $50,000.

National Guard Student Loan Repayment Eligibility

To participate in the National Guard Student Loans Repayment Program, one must have joined the Army after their student loan was taken out from the lender, as well as meet the following requirements:

  • Sign a minimum of a six year Reserves contract. IF one is already in the National Guard  they need to extend their service commitment to meet the 6 year minimum service term. For example if you have 4 years left, 2 years extra will need to be committed to, as a full 6 year extension is not necessary. Reenlistment is an options as well.
  • Loans must not enter a state of default while you are participating in the National Guard repayment plan.
  • Completion of the National Guards basic training.
  • Be participating in monthly and yearly drill status.
  • Have a minimum of one student loan and have never participated in a student loan repayment program.

Depending on the state, eligible applicants may be about to add an additional loan in the midst of their term, which will also be eligible to be paid off.

It should be known that on top of participating in the National Guard Student Loan Forgiveness and being eligible for funds, the Military most often will even pay more of your student loan debt off as a token of appreciation after your term has been served, which are great incentives that can be taken advantage of by those who are either serving right now or are looking to serve in the near future. Some states offer much better repayment than other, so to find out more about the National Guard Student Loan Repayment Program, and what you may be eligible for, you can call toll free at: 1-800-GO-GAURD.


Repayment Of Student Loans

November 16, 2011

Repayment of Student Loans

Repayment Of Student Loans

Before we get into the details or repaying student loans, if you happen to land on this page searching for methods on paying off your debt fast, or just want to check out debt elimination methods after you are done reading the article, you can check out this link: Repayment Of Student Loans.

Repayment of student loans usually begins with most lenders, after the grace period that they grant you, which can be anywhere from 3 to 9 months after either the student graduates, or after dropping out. There are various student loan repayment methods that you can use, depending on several factors, and consist of:

  • Standard Repayment Plan – Repayment of student loans through the standard plan is for those who are looking to get out of debt fast, with the repayment timeframe usually being 10 to 12 years, where at the end you are completely out of debt with that particular lender.
  • Graduated Repayment Plan – This student loan repayment methods allows one to start out with low payment, payments which can be as low as 5 dollars a month, and as time goes by the payment gradually increases. Increases in repayment amounts happen ever year or two, which can be a great option for those who are searching for a job and need small payments but will be able to afford to pay larger payments later on in their career.
  • Extended Repayment – Repayment of student loan debt through the extended repayment plan allows one 25 years to pay off their loan, and can be combined with the graduated repayment plan, which is used for the sole purpose of lowering your monthly payment but coming with the price of staying in debt longer.
  • Income Based Repayment – Also known as “income sensitive repayment”, this method is where the individuals monthly payment is based of of how much their earn each month, the payment being around 10 to 15 percent of what their monthly earnings are. If in the event that the individual hasn’t paid the debt off completely after the 25 year term has concluded, then whatever is left on the total amount owed will be considered as taxible income.
  • Income Contigent Repayment – With this plan, if income is below a certain level, payments can actually be $0. The amount individuals pay through this repayment of student loans method is up to “20 percent of their discretional income”.

Repayment Of Student Loans Through Forgiveness

Repayment of student loans can also be done through the likes of student loan forgiveness. Student loan forgiveness can be found through different methods, but the most popular forms of forgiveness are found through:

  • Federal Student Loan Forgiveness – This is where one will work a public service job that at the end of 10 years, the rest of their loan debt will be forgiven. This requires the individual to repay 120 on time payments over the course of the 10 years in order to qualify. There are also designated programs for; teachers, lawyers, nurses and other professions with similar rules.
  • Community Service – Repayment of student loans through community service work forgiveness can be found through organizations like VISTA, Peace Corps and Americorps, where they offer either a lump sum after each year of service which is to be used to pay off student loan debt, or will pay off a percentage of your loan for each year of service, usually 15 to 30 percent each year.

Income Contingent Repayment Overview

September 13, 2011

Income Contingent Repayment

Income contigent repayment on student loans is a payment option for federal loans via the US Department of Education specifically for Direct Student loans as well as direct loans that have been consolidated. The income contingent repayment option was created to make the lives of students working in both jobs with low income as well as public services jobs a lot easier. This is done by taking into account both the size of your income as well as the size of your family and factoring in a affordable payment total that will cater around these two parts of your life, and can be adjusted annually if these two categories happen to change.. More information is discussed below.

Income Contingent Repayment

Income Contingent Repayment Major Information

  • The maximum repayment period of the income contingent repayment option is 25 years, in which if a person stays faithful to paying each month, and there happens to still be debt at the end of the 25 years, their debt will be wiped away and become considered as taxable income. So if there is 10,000 left on your debt, you will be taxed as if you earned 10 grand that year.
  • Loans must not be in default to take advantage of income contingent repayment.
  • If you choose to work a public service job under the income contingent repayment option, you will have your loan debt cancelled after 10 years on time payments while working the public service job.
  • Payments can be as low as 5 dollars per month.
  • You are not locked into the 25 year repayment plan. If you are able to pay more down the line, you are able to do so without being hit with a penalty, which will help you get out of debt a lot faster.
  • Although the process of figuring out what your monthly payments will be is complex, the montly payments usually equal to about 20 percent of your montly income, or the amount it would cost to ultimately pay back your student loan debt in 12 years.
  • If you are unable to pay your interest payments, the total is added to the principal amount of the loan each year, which is capitalized. But the good thing about this is that there is what is called a interest cap at 10 percent of what the original total of your debt was, meaning that once your reach the 10 percent mark, unpaid interest continues to be added, but isn’t compouned.
  • The interest rate on income contigent repayment is based off the average of average interest rates that you are using on income contigent repayment and are placed at a fixed rate that will never change throughout the life of your repayment.

Income Contigent Repayment Conclusion

This is a main overview about income contigent repayment on student loans. If you are interested in using income contigent repayment on your loan debt, you can inquire about it directly through your lender who will be able to get you started. If for any reason they do not allow you to use IBR for your loans, you can contact what is called FSA Ombudsman who is dedicated to helping students work out any type of dispute related to their student loan and are part of the US Department Of Education. Contact information for them is  1 877 557 2575.


Income Based Repayment Program

September 12, 2011

Income Based Repayment Program

The Income Based Repayment Program (IBR) is a fairly new concept for federal loan payment, and is an awesome addition to to traditional repayment program options. A basic definition of the Income Based Repayment Program is your monthly payment is based off a percentage of your monthly income, usually being around 15 to up to 20 percent, and can be used no matter what age your loan is as well as what type of education it was for.

This option of repayment doesn’t have any income requirements so you can use it for any income you earn. It can also be catered around your family size as well. The below information will provide you of an overview about qualifying loans as well as all the major details Income Based Repayment Program with the pros and cons.

income based repayment program


Income Based Repayment Program Eligibility

There are certain federal loan programs that are eligible for Income Based Repayment, and some are not. Here are the qualifying loan options that one cna use for IBR as well as the ones that do not qualify:

Qualifying Loans

  • Federal Stafford Loans.
  • PLUS Loans as well as loans in cosolidation if they are part of the Direct Student Loan Program as well as the FFEL Student Loan Program.

Non Qualifying Loans

  • Defaulted student loans.
  • Parent PLUS Loans as well as consolidated Parent PLUS Loans.

As far as personal qualifcations go for the Income Based Repayment Program, your payments start out higher if you have no kids and get lower if you have one or more children, getting lower for each child you have. These payments are changed if income and family size change. Here is an example of how this works:

  • 50,000 income level – 1 child – $421, 2 children – $349, 3 children – $278, 4 children – $206, 5 children – $134, 6 children - $63 and 7 children – $0.

Income Based Repayment Program Pros & Cons


  • You can start out with little or no payments, which can be great when you first get out of college and are looking for a job, and as your pay advances so can your payments, making your repayment period get shorter.
  • If after 25 years you still have debt on your student loans, you may be able to qualify for cancellation of whatever sum is left.
  • If you have Stafford Subsidized Loans (income based loans) and your Income Based Repayment Program total amount you pay doesn’t equal your interest payments, the government will pay for whatever builds up in the form of interest on your loans for up to a three year period from when you first began IBR.
  • You can also use student loan forgiveness with public service jobs where you work for 10 years and make 120 on time payments in which at the end of this period, whatever is left on your loan debt will be wiped away on certain loans. This option is available for Direct Loans as well as consolidating FFEL Loans.


  • You have to up date you information each year, proving what your income as well as family size is and any changes that have came up during the last year in either category. Not providing this information each year will result in your repayment automatically being placed in a standard repayment which is where you have to pay a monthly fee that will fully pay off your loan debt in 10 years.
  • Being that Income Based Repayement Program usually comes with a lot lower payments, this will extend the repayment period which will result in more interest payments.

Using Income Based Repayment Program

If you are interested in taking advantage of the Income Based Repayment Program, you will have to contact the servicer of your loans who take into account your information and altimately determine what payment amount you are eligible for.

Federal Student Loan Repayment Options

September 10, 2011

Federal Student Loan Repayment

There are 5 different methods of federal student loan repayment that you can choose from when looking for a repayment plan that best suits your financial needs as well as how fast or slow you wish to pay off your loans. These plans can also be swtiched any time during your repayment process so you do not have to worry about being stuck with a federal student loan repayment plan that doesn’t fit your particular situation. Below are each repayment plan as well as all encompassing information on each.

Federal Student Loan Repayment

Federal Student Loan Repayment Options

First off this section will discuss the basic programs that are offered for each federal student loan, the next section will discuss specifcs about repayments offered through federal grant programs. Here are the federal student loan repayment options that you can utilize come payment time:

  • Standard – The standard federals student loan repayment option is one that will allow its borrower a timeframe of 10 years to pay back student debt. The payments are a bit higher then longer repayment plans, but will get you out of debt faster as well as you will save money because you will be paying less interest because of the shorter time frame of payment.
  • Extended – The exteneded federal student loan repayment method is one that allows you anywhere from 12 to 25 years to repay your loan. This method is available for borrowers who have over 30,000 dollars in debt. Payments are a lot lower than standard repayment, so this is for those who cannot currently afford a higher monthly payment.
  • Graduated – This method allows the borrower to start with a lower payment and have it increase every two years, which will give you the freedom of low payments right after college and higher payments down the road when you can afford them. This option can also be combined with the extended federal student loan repayment option.
  • Income Contigent – Income contigent repayment bases your monthly payments off of a percentage of your montly income, usually being 15 percent. So whatever you earn, no matter how much or how little, your payments will be at 15 percent of your income.

Federal Student Loan Repayment Specifics

Certain aspects apply to different federal student loan programs, here is an overview to these federal student loan repayment specifics.

  • FEEL Loans can also qualify for income contigent repayment where your montly payments must equal at least what you pay in interest each month.
  • Dircet loans provide income contigent repayment where your montly payments cannot go higher than 20 percent of the discretionary income that you earn. This option also allows one to pay as low as no payments at all if their income is very low, at which if they don’t pay off any part of the loan after the 25 year repaymen period, whatever amount is left on their debt will be considered income and they will be taxed on it.




If you are having trouble making your payments and are looking for relief, click this link: federal student loan repayment, where you find information on different student loan relief methods.

Military Student Loan Repayment

September 8, 2011

Military Student Loan Repayment

Military Student Loan Repayment

First off, before we get into Military student loan repayment, chances are good that you have either served or are intending to serve, so we want to just extend a big thank you for providing your service to our country! The Military student loan repayment program was started as an incentive for people to enlist and serve. The rules of eligiblity are that you can get a portion of your debt paid off for non prior enlistments of the Military on your eligible loans for college. It is important to know that Officers do not qualify. Below will be information on the maximum debt totals that can be wiped away as well as qualifying loans and eligiblity requirements.

Military Student Loan Repayment – Maximum Forgiveness Amounts

Currently the Congress has stated for Military student loan repayment that the maximum amount that can be forgiven on student loan debt for non prior service members is up to 65,000 dollars. Although this is a general rule, each branch of service has it’s own maximum forgiveness totals. Here are the totals of military student loan repayment for each branch:

  • Active Duty can get one up to 33 1/3 pecent paid off of their loan each year that they provide their service or 1,500 dollars whichever is the greater total. This payment process is started after the first year of service.
  • Army and Navy pay up to the maximum for non prior service enlistment for active duty.
  • Reserve enlistments in the Army can get up to 20,000 dollars of their debt wiped away, which includes the national gaurd as well.
  • Air Force service will get enlistment members up to 10,000 dollars of their loan debt.
  • Navy Reserves offers up to 10,000 dollars in military student loan repayment to those enlisted as Reserves.
  • CLRP through the Air Force Guared can garner up to 20,000 dollars off student loans by working specified jobs that are experiences shortages.
  • Army and Navy Reserves can receive up to either 15 percent off their loans or 1500 dollars whichever amount is deemed greater
  • The Air National Guard can get eligible memebers up to 15 percent or up to 5000 dollars of their loan, depending on which amount it greater.

Loans That Qaulify For Military Student Loan Repayment

Not all loans qualify for the Miltary student loan repayment program. Here are both the qualifying loan programs that you can use for Military student loan repayment.

  • Stafford Loans
  • Parent PLUS Loans
  • Consolidated Loan Program
  • Federally Insured Student Loans
  • Supplemental Loans For Students
  • Perkins Loans
  • Auxillary Loan Assistance For Students

Military Student Loan Repayment Qualifications

Here are the qualifications one needs to meet in order to participate in Military student loan repayment:

  • Active members should not have any past military experience.
  • 6 year enlistment is required if you are going to serve in the following: Army and Navy Reserve as well as the Army & Air National Guard.
  • You must enlist with a high school education in the Army as well as received a score of 50 or above when taking the Armed Forces Vocational Aptitute Battery testing.
  • On your contract of enlistment, the CLRP needs to be annotated.
  • For branches where shortage jobs are worked to receive loan forgiveness, you need to be working in one of the specified jobs that are included in the qualifying list of jobs. A local recruiter can explain to you which jobs qualify.

Other Details of Military Student Loan Repayment

  • The amount paid off on your loans is considered to be taxible income, that needs to be paid to the IRS.
  • Any interest that has piled up is currently not eligible for loan forgiveness.
  • Often times participants in military student loan repayment programs can get their student loans defered, which you should contact your lender to see if this is a possiblity



Student Loan Repayment Program Options

August 30, 2011

Student Loan Repayment Program Options

If you are looking for a great student loan repayment program, then you are in the right place as this aricle will list off many of the different repayment programs you can use to pay off your student loans. These programs will cater to whatever you can afford as well as range in different lengths of time in which you can repay your loans, which will be listed below. If by chance you can to this Student Loan Repayment Program page and were looking for student loan forgiveness programs, which are often times confused with repayment, click on the blue link that says “student loan forgiveness”.

Student Loan Repayment


Student Loan Repayment Program - 5 Different Options

  1. Level/Standard Student Loan Repayment Program – This option is the most used out of all of them, where you pay a monthly payment which starts as low as 50 dollars and it stays that way until your loans are fully paid off. These plans are usually set at a 10 year repayment period.
  2. Extened Student Loan Repayment Program – This plan is for those who are in a pinch financially and are looking for lower payments. Lower payments are available through this student loan repayment progam option because the length of repayment is extended from the regular 10 years to ranging from 12 years to up to 30 years with payments as low as 5 dollars.
  3. Graduated Student Loan Repayment Program – This option allows one to start off with lower payments in the beginning of loan repayment but increases every two years thereafter. This plan is set as a way for students to get their first job where pay will be a little lower, and as the get raises and better income opportunities, the payments will go up. These plans are generally set as well for 12 to 30 years.
  4. Income Contigent Student Loan Repayment Program - This option is has many similarities as the Graduate repayment progam being that it increases after a certain timeframe. This option allows one to start out by paying as low as 5 dollars if that is all your income permits and is fully based off 15 percent of your income. The great perk with this student loan repayment progam is that if your loans total above 50,000 dollars, you can pay your loan payments for 25 years, then after 25 years is up, whatever is left on your loan will be eliminated.
  5. Student Loan Forgiveness – This student loan repayment program method can provide you with student loan relief in the form of either a percentage off every year you work, or lump payments you can use towards your loan each year of service and can be utilized by working public service jobs, jobs where the area is low income or volunteer work.

Student Loan Repayment Program – Conclusion

Some loans are limited to the different student loan repayment program methods above as well as forgiveness programs. To learn about what is available to your particular situation, you should inquire about it through your student loan lender who can give you more information. Another way that you can check out is consolidation which can offer an extended student loan repayment program as well as grouping all of your loans into one lump loan payment.

Student Loan Repayment – Options You Can Use

August 30, 2011

Student Loan Repayment

There are many student loan repayment can be options that you can consider that can cater best to your situation. Whether you are looking to pay your loan off faster, or slower or anywhere in between there can be a method that suits you best when payment times comes, which is usually 6 to 9 months after the conclusion of your schooling. To get your familiar with student loan repayment, the different options will be listed below and if you happen to be looking to be looking for ways to pay it off faster, we’ve got you covered there too as there will be 4 different ways in which you can use to pay your loan off faster than ever.

Student Loan Repayment

Student Loan Repayment – Repayment Options

Here are 6 of the most used student loan repayment problems that people are using today.

  1. Standard Student Loan Repayment – The repyament time for this option is what all the loans are set at through the lender you went through to get your loan when you first signed your contract. This plan is usually on the short end, probably 10 years and is good if you want to pay you loan off quick, but it will yeild the highest payment plan. It is good to know that this repayment plan can be switched in the beginning, usually the first 1-6 months of loan payments. Monthly payments can be as low as 50 dollars.
  2. Extended Student Loan Repayment – These can be either negotiated with your lender or done through a consolidator. When you extend you student loan repayment period, you are taking your repayemnt timeframe and making it from usually what is 10 years with most programs to 12 to 30 years as well as at least 50 dollars is demanded for monthly payments.
  3. Graduated Student Loan Repayment Plan – This plan is one where your loan payment starts out low and increases after a certain amount of time, usually being every two years it will increase. This is a great way to pay low payments when you get your first job, and be able to establish yourself and pay more later when you are earning more. This student loan repayement option usually offers payment plans that range from 12 to 30 years as well.
  4. Income Sensitive Student Loan Repayment – This option is fully based off what you earn. You monthly payments will be adjusted to a rate at which you can afford.
  5. Income Contigent Student Loan Repayment – This is similiart to the Income Sensitive repayment plan, but this one will have monthly payment increases as your income increases.T hese payments have been as low as 5 dollars per month for some people and is based off 15 percent of your income. For loans above 50,000 dollars, after you pay 25 years of payments at 15 percent of your income, the rest of your loan will be forgiven. This student loan repayment option is the best for those who went into law school, schooling for doctors and any other schooling where loans were very high.
  6. Student Loan Forgiveness – These programs are where you work a public service job, community service or a job in a low income area or similiar, and these programs either offer you a large chuck of money for each year of service, also they can pay a percentage of your loan each year of service, or you work a low income job and make 120 straight on time payments, and after the conclusion of the 120 payments, whatever is left your loan is wiped clean.

These are methods of student loan repayement where you are paying your loan bills, other ways in which do not involve paying are forbearance, student loan default, economic hardship, student loan bankruptcy among others.

Student Loan Repayment – What To Do Now

Now that you know the differet options when it comes to student loan repayment, and you want to use one of these repayemnt methods, the first thing you should do now is to make a budget or your expenses which will give you a better idea of what student loan repayment plan would best fit your situation. After you do this, inquire through your lender or lenders about changing your student loan repayment method.