Two new payment options, Income-Based Repayment and Public Service Loan Forgiveness, are now available for federal student loan borrowers.
Income-Based Repayment (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. IBR will also forgive remaining debt, if any, after 25 years of qualifying payments.
Public Service Loan Forgiveness is program for borrowers who work in certain kinds of jobs. It will forgive remaining debt after 10 years of eligible employment and qualifying loan payments. (During those 10 years, the Income-Based Repayment (IBR) plan can help keep loan payments affordable.)
For more information, visit www.ibrinfo.org/what.vp.html