Thursday, October 22, 2009

A New Student Loan Repayment Plan

...rolled out by the federal government gives you the option of repayments that are based on your income. The page has a chart of monthly repayments, determined by your income and household size.

The loans that can be adjusted include Stafford, Grad PLUS or Consolidation loan made under either the Direct Loan or FFEL program UNLESS the loan is currently in default. Also ineligible are parent PLUS Loans, or consolidation loans that repaid a parent PLUS Loan.

In addition, there is a public service loan feature that allows the loan to be forgiven entirely after 10 years of reduced payments if the student does public service work as defined here. If you may be eligible, it's worth checking out.

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