After college, you embrace the new world with your head held up high. Far from what you may think, your troubles are not over yet. Now, you have to face the burden of loans, interests, low paying jobs, bills, taxes, etc. The federal government has put up a new program that is a big relief for many people who are still working doubly hard to pay off student loans. It is called the Income Based Repayment Plan. Basically, this is a big opportunity for individuals who are struggling financially due to a measly income and the big expense because of student loans that need to be settled.
Under the Income Based Repayment Plan, individuals who are faced with this predicament can be freed of at least 15% of their federal student loan payments. If you are a vying candidate of the program, note the following considerations as they are factors in evaluating your situation or eligibility for the program.
• Civil status. The new scheme for payment is based on family income. So married people don’t have the favor on their side. However, for soon to be wed couples, consider filing taxes separately which may just land them for a loan relief.
• Occupation. If you are working as a public service servant, you have to file for consolidation of your federal loans because these are the only type of loans that may be considered in your case.
• Employment status. The new loan payments under the IBR program will be based on the previous year’s tax filings.
• Good payment record. Those who have worked in public service and obediently filed their taxes may be eligible for a retroactive credit for past loan payments and the remaining balance may qualify for total loan relief.
This is definitely a big help to pay off student loans. You have to note though, that the federal government’s program for Income Based Repayment is only applicable to federal student loans. So, if you feel like you’re a trapped mouse in a cage of other unpaid student loans, don’t fret just yet. Individuals, who are facing the dilemma of making student loan payments aside from the federal student loan, may also receive assistance from the federal government under other programs. So, it will greatly help if you can spare some time to call for consultation and possible financial assistance or any other option that may be able to assist you with your case.
The truth is that you have to pay off student loans. Most people who are facing cash shortage find themselves sin the situation because they have to pay high monthly loan payments and interests despite their low income. But the government also provides assistance when the financial burden of loan payments is weighing on your shoulders. The federal government’s efforts to help ease financially challenged individuals’ loan payment problems is reflected in its new program, the Income Based Repayment Plan that serves ultimately to help people faced with heavy debts due to federal student loans.