The following information is about the Income Based Repayment plan for the federal student loans. The information includes the eligibility criteria, calculation of payment and benefits of the plan with some examples to make the understanding easier. Some common questions answered;
What is the Income Based Repayment?
As the name suggests, Income Based Repayment is a new scheme of repaying the loans taken by the students. Under this scheme, the student can repay the loan as per his monthly income and family size. For example, if your income allows you to pay only $500 a month towards repaying your loan, your loan repayment will be capped at $500.
