Do you have a large amount of federal student loan debt? Do you look at the obscene balance on your monthly statements and think to yourself, “Wow. I’m going to be paying this off for the rest of my life.” Well, you might not have to.
In 2007, Congress passed the College Cost Reduction and Access Act, which created the Income-Based Repayment program (also known as “IBR,” described in one of my earlier posts below). IBR and another repayment program, the Income-Contingent Repayment program (“ICR”), calculate a unique monthly payment amount for borrowers with relatively high amounts of federal student loan debt compared to their income. IBR and ICR keep your monthly payments low. The Act also provides two ways to get your loans forgiven.