Wow, Federal Student Loan Forgiveness for Public Service Workers

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Starting July 1st, you may be able to lower your monthly federal student loan payments. Here is the info from www.mymoneyblog.com:

"If you have a student loan debt balance that is close to or exceeds your annual income, this is for you. Income-Based Repayment (IBR) 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. Under IBR, most borrowers will have a monthly payment that is less than 10% of gross income. This includes single borrowers with less than $50,000 in income and married borrowers with two children who have less than $100,000 in income. This is only available to federal student loan programs, so those with private student loans are not eligible.

To see if you qualify for a lower payment, enter your info into this IBR qualification calculator. To enroll, you’ll have to contact your lender directly about income-based repayment once it become available July 1st, 2009."

This is a pretty sweet deal if you are swimming in student loan debt like some of my friends. I was fortunate enough to have a lot of support from my family, so my relatively small amount of debt doesn't qualify for this

Here is the link directly to the program's website: http://www.ibrinfo.org/. The video on there is pretty easy to understand and actualy kinda fun to watch.

Some other links of interest:

Qualification Calculator - http://www.ibrinfo.org/calculator.php
USA Today Article - http://www.usatoday.com/money/perfi/columnist/block/2009-05-18-student-loans-repayment-options_N.htm
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I hadn't heard about this program at all. Thought some of you might be interested. Go get a public service job that pays less than 50k a year!
 
After 25 years, but the average student loan is paid off in 10 years. Exactly how many people can this possibly help?
 
The Duke Of Nuke said:
Um, those below the average?

It's not designed for everyone. Just those struggling.
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I made under $50K for the longest time, also my loans were more than that. My loans will be paid off in 10 years (15 after consolidation)of graduation. I thought I was fairly regular college grad with my funding and plans for loan payback. The default federal loans take 10 years to payback. Any longer and it had to be consolidated or non-federal loan.

I just don't see how this helps anyone unless they consolidated upon graduation to move the payment plan to 15 years of payments, then after 10, qualify for this.

But wait, if you consolidate, it is through a private company. This is only for federal loans, which are for 10 year payment strategies. That means no one would qualify for this unless somehow someone extended their payment plans passed the federal default level.
 
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dbzeag said:
But wait, if you consolidate, it is through a private company. This is only for federal loans, which are for 10 year payment strategies. That means no one would qualify for this unless somehow someone extended their payment plans passed the federal default level.
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Private companies just manage it. it's still a federal loan. Don't believe me? Try to default on it. Good luck! :D
 
apparently i'm a sucker for focusing my resources on paying off my student loans after college instead of paying the minimum and dragging it out forever. typical... screw the responsible people.

better option would be to give out a ton more scholorships for teachers so you can get prime canidates up front, instead of rewarding poor choices of spending tens of thousands on getting a degree in a job with minimal pay. or pay teachers better.

i disagree with letting non-profit and other public service workers off the hook. most non-profits are run as a normal business that can pay their employees whatever they feel is the current market value... see: the red cross.
 
Technically, having a student loan forgiven would be more advantageous than ahving it come out of your inheritence. Jes sayin.
 
here's how i plan to deal with my student loan

move down south to the Republic

end. of. story.
 
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