July 1st – New Federal Loan Program

Posted by LisaHill - 25/06/09 at 05:06 pm

Subject Matter: Federal Loan Program Caps or Cuts Payments
Grades: College and Grads

New Rules Kick In 7/1/09
The Income Base Repayment program allows graduates to pay no more than 15% of their income toward monthly loan payments.

Starting July 1st, 2009, students with moderate to low incomes will be required to pay less than 15%, or nothing at all initially. It doesn’t mean the loans don’t have to be paid, but it reduces the monthly amount due.

Anyone who makes the required minimum payments for the 25-year loan may have the remaining balance written off. This provision can also be reduced to 10 years for individuals working in public-service jobs, including state and federal employees, nonprofit workers and public health employees

Just remember, this program may extend the life of your loan. It’s wiser to pay off your loans now if you can, rather than delay. Delaying the loan can increase interest paid.

Who Doesn’t Qualify
Private loans taken out by students, or federal loans taken out by parents do not qualify for this program. And people already in default of their loans do not qualify.

To Apply
Contact your lender who holds the student loan, and see if you qualify.

This entry was posted on Thursday, June 25th, 2009 at 5:51 pm and is filed under Free Programs, Scholarships/Tuition, Teacher Programs. The entry is tagged under college loans, federal loan program, Federal Student Loans, federal workers, Income Base Payment Program, Loan program, student debt, student loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.