“Income-driven repayment” (sometimes referred to as income-based repayment) is an umbrella term for student loan repayment plans that allow borrowers to make payments on their federal student loans based on their income. The plans – and there are several, including one called Income Based Repayment – use a formula tied to the borrower’s income and family size, resulting in a monthly payment that lasts for up to 12 months at a time. The borrower must then renew the plan before the end of that 12-month period by submitting new documentation of income. Any changes to income could result in changes to the monthly payment, but after making payments for many years (the repayment term depends on the specific plan), any remaining balance gets forgiven.
Income-driven repayment has enormous benefits to student loan borrowers, as it allows borrowers to have affordable monthly payments, even for large federal loan balances, and thus keep their federal loans in good standing. These plans also do not require full loan payoff, as there is a loan forgiveness “safety net” at the end of the repayment term.
But it’s not all sunshine and roses. There are some potentially serious drawbacks to income-driven repayment, and borrowers considering these plans should be aware of them.Read More
There’s always a lot going on when it comes to student loan servicing, and it can be hard to keep track of everything. Here are some of the latest developments impacting student loan borrowers:
A couple of months ago, Congress passed new legislation 
The Trump/DeVos administration has been busy during the past 18 months, rolling back significant protections for student loan borrowers and their families. Just in the past couple of weeks, there have been two new developments that curtail regulation of predatory schools, lenders, servicers, and debt collectors.
Student loan refinancing has been a hot topic during the past several years. Trendy new companies – like SoFi, Earnest, LendKey, and CommonBond – have been offering slick refinancing products to entice borrowers. Major banks and credit unions have also jumped in, sometimes offering tantalizingly low interest rates. The best loan products are generally marketed to doctors, lawyers, and other high-income professionals who tend to have large amounts of federal student loan debt, but great earning potential and excellent credit.
Last week, Congress passed – and the President signed – a major spending package that touches nearly every element of society. Buried deep within the 2,200 pages of legislation are some interesting provisions regarding the Public Service Loan Forgiveness (PSLF) program, which allows borrowers to get any remaining balance on their federal student loans forgiven after 10 years of “qualifying payments.”
What’s more stressful than student loans and taxes? Not much. But don’t get paralyzed. Here are some tips to guide you as we enter the height of tax season.
The Trump administration released a budget blueprint yesterday, outlining how it wants Congress to address government spending. The proposal calls for 
At midnight on Friday, January 19, 2018, the federal government officially shut down after congressional Democrats and Republicans, and President Trump, could not agree on a compromise to continue funding the government. When the government shuts down, it means that nonessential employees are sent home without pay, and federal agencies cease most nonessential operations, until the impasse is resolved.
Well, 2017 has been quite an explosive year, hasn’t it? And there’s been a lot going on in the world of student loan law – so much, in fact, that it can be a bit overwhelming to keep everything straight. So as we wrap up this year, here’s an overview of what went down for student loan borrowers, and some hints of what’s to come in 2018.