Are you struggling to keep up with your federal student loan payments? If so, a provision of the 2007 College Cost Reduction And Access Act, known as IBR (Income-Based Repayment), may be just what you've been searching for.
Although the law was passed in 2007, it actually took effect on July 1st of 2009 and is available to anyone with an eligible federal student loan. IBR essentially allows qualified borrowers to restructure student loan payments based on a formula that takes into account two major variables—level of income and the number of family members in their household.
In addition, the payment period under IBR is 25 years instead of the normal 10-year term, which will help minimize payments as much as possible. And the best part is any amount of student debt that remains after 25 years of payments will be forgiven under the new law. That's right - forgiven!
Check out IBRinfo.org for more detailed information, and contact your lender today to determine if you qualify for payment restructuring under IBR.
