Submitted by Rachel R on Fri, 06/08/2018 - 9:11am
Student loan payments can be cheaper
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Outstanding student loan debt in the U.S currently stands at almost $1.5 trillion. Repaying this debt is a burden for many. If you’re struggling to make your student loan payments, deferment or forbearance can give you a respite from payments, but after that, you need a long-term solution.
Income-Driven Repayment (IDR) plans base payments on discretionary income, not loan balance. Reducing payments can get you back on track and protect your credit rating. Discretionary income is the difference between adjusted gross income and 150% of the federal poverty level for your family size and state.
To qualify for this plan, your IBR payment must be lower than it would be on the standard 10-year repayment plan. You can also qualify if your student loan balance is higher than your annual discretionary income.
A plus of ICR is there’s no income eligibility requirement. It is also the only IDR plan under which Parent PLUS Loans qualify if you consolidate them with a Direct Loan. ICR may be your best chance at IDR if you struggle to qualify for others, but payments are higher than on other plans.
This plan is like IBR - the only difference is it has stricter requirements. To qualify for this repayment plan, you must be a recent borrower, taking on debt after October 2007. You also must have a Direct Loan disbursed on or after October 1, 2011.
The newest of the IDR plans, REPAYE began in December 2015. It is similar to PAYE, only that you don’t have to demonstrate financial need.
Last, if you absolutely cannot afford your student loans and have extenuating circumstances. You must usually show undue hardship to get student debt forgiven in bankruptcy and will have an easier time if you have a chronic illness, disability, or long-term low income with few prospects.
Even if you can’t get your loans forgiven in bankruptcy, shedding other debt can make it more feasible to pay them when you don’t have other obligations on your financial plate. To find out more, read reviews from satisfied clients, then contact the Law Offices of John T. Orcutt.
Call +1-833-627-0115 now for a free student loan debt consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.
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