In today's challenging economic climate, repayment of student loans can lead to anxiety and frustration. However, thanks to several new federal initiatives, borrowers may receive some much-needed assistance in managing student loan repayments, according to the Chicago Sun-Times.
Federal education officials have been attempting to raise awareness of a new program, known as Income-Based Repayment (IBR) that aims to reduce the financial pressure of student loan debt. Although the initiative is currently underused, with just 450,000 of a potential 36 million eligible borrowers enrolled, more students are receiving help in managing their payments.
According to the program's official website, students participating in Federal Direct Student Loan and Federal Family Education Loan Programs are eligible for the IBR initiative. For many debtors enrolled in the program, repayments will be less than 10 percent of the annual income, and any remaining debt will be forgiven after 25 years. If borrowers earn less than 150 percent of the federal poverty guidelines, payments will be reduced to zero until their financial situation improves.
"For people who are just out of college and starting at the bottom, it’s a huge help to have a payment that matches what’s going on in your life," Stephanie Holstein, a member of the IBR program for more than two years and graduate of the University of Notre Dame, one of the leading colleges in Indiana, told the newspaper.
What do you think? Would you be willing to try this new loan program?
Tags: colleges in Indiana