If You Have Student Loans, You Could be Eligible for Income-Based Repayment Options

Americans owe more than $1.4 trillion in student loans. Federal loans account for a majority of the student loan debt in the US. However, there are multiple types of federal student loans that are or were available to borrowers. Many people who borrowed after July 2010 have federal student loans that originated from the Department of Education’s Direct Loan Program. Borrowers with Direct Loans may be able to access most of the helpful income-driven repayment programs offered by the Department of Education. Borrowers may also have Federal Family Education Loans (FFEL Loans), Parent PLUS Loans and Perkins Loans. The options for income-driven repayment programs are different for these borrowers. Income-Driven Options for Borrowers with FFEL Loans If you have FFEL loans, then your only income-driven repayment plan option is the Income-Based Repayment Program (also called IBR). With this program, your monthly payments are capped to 15 percent of your discretionary income. You…

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