Important New Resource for Borrowers
www.IBRinfo.org is a new web site that provides independent, reliable information about Income-Based Repayment and Public Service Loan Forgiveness, two new federal programs to help make student loan repayment fair and manageable. The site explains the programs and will be updated as new information becomes available. Users can register to get updates on important developments as the U.S. Department of Education finalizes regulations and creates the systems for managing the new programs.
If you are hearing from individuals or groups worrying about student loan payments or those wondering if they can afford to take a public service job, www.IBRinfo.org will be helpful.
Income-Based Repayment (IBR) is a new payment option for federal student loans. It will help borrowers keep their loan payments affordable with payment caps (less than 10% of income for most eligible borrowers) based on income and family size. IBR also will forgive remaining debt, if any, after up to 25 years of qualifying payments. Public Service Loan Forgiveness will forgive remaining debt after 10 years of eligible employment and qualifying loan payments for people working in key public service professions such as teaching, government, social work, law enforcement, and non-profit 501(c)(3) organizations.
These new programs take effect in July 2009. It will take a while before the U.S. Department of Education has all of the regulations written and the systems up and running. In the interim, IBRinfo.org will provide information on these two new federal programs, as well as other student financial assistance. On this website, consumers also can sign up to receive alerts about new developments as they occur.