Ditch Your Debt Gremlin
Income-Based Repayment is a new way to lower your federal student loan payments starting July 1, 2009. It caps monthly payments and forgives remaining debt and interest after 25 years. And if you’re a teacher or work in government, nonprofit, or other public service jobs, you could have your federal loans forgiven after just 10 years. This animated video explains the programs and tells you where to go for more information: www.IBRinfo.org.
tobasco 77 > College is not a scam, PAYING for college is.
Good news. Good delivery.
I struggle to stay alive in this economy, I have a huge house payment 1643/month no job, can’t get a response from unemployment, living on credit right now, I have 81.8k in outstanding fed student loan. I am a BSEE from University of Colorado. Without this restructuring I will file Bankruptcy. The only hope is to go back to school and acquire even more debt. Hows that for opportunity cost you economists out there?
I graduated in 2004 with $46,000 in debt from my undergraduate degree… I currently work 50+ hours a week for 9.50 per hour… At least I am paid by the hour… If I took the salary they offered me, I would only be earning about 9.00 per hour… Never Mind the TAXES they take out of my paycheck…. Today, in 2009… Companies are filled with college graduates who work for NOTHING with ZERO benefits for 50+ hours per week and they all OWE $40,000+ for student loans…
COLLEGE IS A SCAM!!!!!
Forgive Student Loans now!!!!stop rewarding thieves in Wall Street!!!! The productive individuals in this society are hurting because of the ignorance of the ignorants with power.
This plan, from all the trainings and certifications I’ve personally had to go into, is excellent for high balanced accounts. It was about time the goverment started to do something about all the interest private lenders charge.
Hope this helps!
It ends being the same as someone who earns less but owes less in student loans… and I see this everyday. This issue always comes up, and they pay and pay, but the loan balance barely goes down.
Again, my perspective can, and is biased because I speak to borrowers who are having financial hardship, and the ones who aren’t are obviously paying and don’t need asssitance.
This also happens to doctors who own their own practices, and have so much to pay out, they are left with little.
In the same way, their gross income (before taxes) is about 5000, but in reality, (as I’m sure you’re well aware, it ends up being about 3500, depending on how they file their taxes.
Now imagine having to pay out about 20% of your monthly income towards your student loan. It is almost as high as a mortage on a small house. Generally, these lawyers also have families to support and a lot of taxes to pay at the end of the year because of the tax bracket they are stuck in.
Let me put an example for you:
lawyers who work as public defendats may earn about, say 60,000 a year. They owe in student loan debt about 150,000, monthly payments are around approx. 1300, from which about 1000 end up being interest (again, this all depends on their interst rate)… and 1000 in interest is very cheap for a high-balance loan.
Again, we speak to borrowers on daily basis, and even though there is a percentage of borrowers that owe a lot, but also have enough discretionary income to repay their student loans, there are many others on a financial crisis.
Can you give us a typical example?
Why are you complaining about this? Was there some program before that would have helped you out of your situation that this has replaced? Or are you just bitter that you didn’t realize just how much med school would cost before you went and now gripe when other people benefit from a new program unrelated to your situation?
I work for the student loan industry…and to be honest with you… it’s such a different view when I work with their financial statements and their profit/loss statements. You’d be surprised how little they can actually keep as income
Poor doctors. They didn’t want to help people, they wanted to have 3 Mercedes, instead of just two. Boo-hoo-hoo!
Must be nice to make those six figures when having to pay Dr.s insurance at 5 figures and their personal insurance and others. There is a statistic out there of many Dr.s saying if they could go back, they would choose a different career.
What the heckeroone are ya talkin’ about? How does this program reduce a decent salary of a doctor or lawyer to a crap salary? How would you not qualify with a crap salary? How does 0 (zero) qualify as a crap salary and disqualify you from this program? And most doctors and lawyers clear six-figures (fact).
Not everyone that attends law or med school practices these professions or even completes the education. You are sorely misinformed and biased if you think every doctor and lawyer earns 6-figure income like you see on TV. So, “the hell” I’m talking about is paying for the education even if you’re not in the profession, regardless of the circumstance. Before blasting your uninformed vitriol, get the facts.
I would say ZERO would qualify as a crap salary. If a statement isn’t clear to you, ask questions rather than jump to conclusions based on your biases. So please don’t assume you know the whole story.
Huh? Why would a doctor or lawyer’s 6 figure salary be “reduced to a crap salary because of this”? What the hell are you talking about?
If you earn a decent salary, you should be able to PAY your loan back. This is for people who use their education to perform a public service for which they should not expect to realistically receive “a decent salary.”
If your salary is “reduced to a crap salary,” and it truly IS a crap salary, then you’d be eligible.
In some situations, your reduced payment under IBR may not cover the interest on your loans. If so, the government will pay that interest on your Subsidized Stafford Loans for your first three years in IBR. After three years and for other loan types, the interest will be added to the total amount you owe. While your debt may grow if your affordable payments are low enough, anything you still owe after 25 years of qualifying payments will be forgiven.
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Sooooooo grateful!!!!
To add insult to injury, if you have massive student debt from say, oh, law school or med school and you earn a decent salary that is reduced to a crap salary because of this, guess what? You don’t qualify! How nice.
right- i have safford and plus loans but the gov would only give me so much because of the “majic” before your 24 and still go off of you parents income.- therefore only getting so much but not enough to pay entire tuition- rooma nd board and cost of living- therefore i had to take out “private” loans through sallie mae in order to cover the rest- understand?
I found out yesturday that they are not covered- so i am still owing 75K in private loans on a salary that is half that