Paying for a higher education can be tough, but not having the financial resources to pay off private and federal loans after college can be even tougher. If you are faced with debt upon your college graduation due to lack of income, an Income-Based Repayment (IBR) plan from the federal government can lower your monthly student loan payments. The IBR plan weighs a student's current income with the total debt and restructures the monthly payments accordingly.
Instructions
1. Check your credit report to see your outstanding student debt. Visit FreeCreditReport.com or AnnualCreditReport.com to get a free copy of your credit report. Add up your federal loans and divide that number by how many payments you have left to obtain your total monthly payment.
2. Obtain pay stubs, monthly statements, W-2 receipts and tax returns. If you are seeking a new repayment plan from a federal loan counselor, you will need documents to prove your current income.
3. Check if you are eligible for the Income-Based Repayment (IBR) plan. Visit the IBR plan website (studentaid.ed.gov) to calculate monthly payments if you qualify. For example, if your yearly income is $50,000 and you have a spouse and two children, your monthly payment under the new IBR plan is $212.
4. Call the Federal Student Aid Information Center at 800-4-FED-AID to find out who holds your student loans. Once you discover which financial institution that is, call to apply for the IBR over the phone, or go to their office to apply in person.
Tags: credit report, credit report your, current income, federal loans, from federal