Tagged with income based repayment in our Blog
With January 1st quickly approaching, let's review the changes made to student financial aid that were effective as of July 2009. These changes include lowering the cost of student loans, an increase in aid for Pell Grant recipients and military aid recipients, and providing help for students who find themselves in unmanageable debt. Grants: Through the College Cost Reduction and Access Act (CCRAA) and the American Recovery and Reinvestment Act (ARRA), there is an increase in the maximum Pell grant award being with the 2009/2010 school year. This funding increased the grant to $5,350, which is up more than $600… Read more here!
You are not alone. If you graduated in May 2009, your grace period is just about up. Here is the audio for an NPR news segment on the challenges of being a college graduate in today's economy. 20091123_atc_16 Now more than ever, students are defaulting on their loans.Here are a few tips to help: Income Based Repayment If you can prove your hardship, the federal government can defer your loans for up to three years. Do not borrow more than you can expect to earn. Don't expect to start your dream job the day after you graduate. A job will… Read more here!
Income Based Repayment (IBR) was enacted on July 1, 2009 as part of the College Cost Reduction Act. If you are a borrower experiencing financial hardship, have low income in comparison to your debt, or pursuing a career in public service IBR may benefit you. IBR is designed to make repaying the cost of your education easier for those pursuing careers with lower paying fields, such as public service. IBR caps the monthly payments based on the borrowers income and family size. Your monthly payments may change annually based on changes in family size or income. Single borrowers must have… Read more here!