Lower Or Cut Out Your Student Loan Payments With a New Government Program

Wednesday, July 1, 2009, will be remembered as an important date in the battle for student loan debt reform and student debt help. That's the day on which the government's new Income-Based Repayment Plan (IBR) became available. Under IBR, you might be able to substantially lower your monthly student loan repayments - you might even be able to cut them out entirely!

IBR covers direct federal loans and federally-guaranteed student loans made through private lenders. It does not matter, whether the loan is old or new, whether it was used for undergraduate, graduate, or job-retraining studies.

Under IBR, you could see your monthly payments capped at rates realistically adjusted downward for your income. Remaining balances would be forgiven after 25 years. Better still, those who go into relatively low-earning fields, such as public service, could enjoy student loan debt forgiveness after only 10 years.

Your income, loan size and family size help determine your monthly payments under IBR. It's your lender who makes the decision, but you can get an idea of what's what at the IBR website, where you'll find an IBR calculator.

For low-wage earners, IBR can be a real boon. People who earn $16,000 a year, for example, (or 150 percent of the poverty level) don't have to pay more than 15 percent of their income. People who earn less don't have to make any monthly payments at all.

But not everyone eligible may end up enjoying all benefits under the program.

Most people, for example, probably will have paid off their loans within 25 years, and so the loan forgiveness aspect won't apply to them.

There is incentive to pay off the loan, too, since the accruing interest could increase the cost of the loan. The faster you pay off the loan, the less expensive it is.

The government's Income-Contingent Repayment Plan is similar to IBR, but it's less generous. It only applies to direct federal loans. It caps payments at 20 percent of income that surpass 100 percent of the poverty level. If you're in the income-contingent plan, you can apply to switch over to IBR.

Unfortunately, IBR cannot be applied to Parent PLUS loans, the federal loans parents take out to help pay for their children's studies.

For more information on this and other efforts at student loan debt reform, visit http://studentloansmart.info.

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Student Debt Consolidation Program - Path To Better Managed Debt

Education is becoming costly, more and more students are opting for education loans. The student debt consolidation program is designed for such students who are in knee deep debt; these programs help them to manage their debts in a better way. Shop around for best student debt consolidation deals, if you find a good one, it can reduce your monthly outflow in the name of monthly installments by about 50%.

What Advantages You Are Getting From The Student Debt Consolidation Program

If you find the best student debt consolidation program, your credit ratings will improve and you’ll be able to increase the pay back period from the standard 10 years to up to 30 years. Additionally you can get the advantage of locking in the lowest interest rate available. This way you will not get affected by the inflation rate fluctuations either.

In the student debt consolidation program, the students also benefit from flexible repayment options. Some financing agencies offer graduated payment program. There the students have to repay lower monthly installments in the initial stages of their career, while they can pay more as their earnings increase in later years. Further, these loans are income tax deductible which means huge savings in the future.

The best student debt consolidation which deals under the federal direct program is easy to apply. It has no charges and credit checks. Besides this no income proof is required and no additional expenses are incurred with it either. The student debt consolidation programs will help you save money for payment of other things like your car, home and medical expenses. To get the best match for your needs and several student debt consolidation programs, use the internet. You can get additional information too.

Counseling Agencies:

Many organizations offer different debt management solutions for various kinds of people and their varying needs. The student loan debt counseling organizations provide the students with counseling on how to manage their loans better. They help the students choose the smartest option and also help to keep the students out of default category.

Thus, all the students who are in debt from different lending agencies and banks can get their loans consolidated into one loan. The student debt consolidation programs are meant to provide students with a loan where they can get best interest rates, lower monthly payments, longer payback period and many incentives and rewards along the way. Now that you are familiar with the concept you may opt for the best deal and remain free from burden of paying back huge amounts by keeping your monthly payments low.

Different student debt consolidation programs are designed to reduce the burden of loans borne by students. These programs offer them lower interest rates, convenient monthly payment schedules and other benefits. There are debt consolidation counselling agencies that help students to select the best deal and option for student debt consolidation. Visit Student Debt Consolidation Loans for more details and information about student loans debt consolidation.

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Rep. Petri Praises Direct Loan Program at Education and Labor Committee Mark-Up

At a training and work sitting 21 July 2009, instead of completing the work on HR 3221, the Student Aid and Fiscal Responsibility Act of 2009, praised Rep. Petri provisions of the bill for the Federal Republic of Family Education Loan program in favor of the Direct Loan Program, in the end.



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