Middle class is the back bone of society. A financially strong middle class can give  impetus  to the economy. Raising their living standards, can result in giving boost to  the  sale volumes  in the Fast Moving Consumers Goods (FMCG) sector.

Secret behind the financial strength of middle class is  affordable, quality education. Therefore it is quite pertinent that initiative be taken to make higher education within the reach of  common man.

President   announced the creation of a White House Task Force on Middle Class Working Families, which is chaired by Vice President . The Task Force is a major initiative targeted at raising the living standards of middle-class, working families in America.

The Task Force is comprised of top-level administration policy makers, and in addition to regular meetings, it will conduct outreach sessions with representatives of labor, business, and the advocacy communities.

The  following  goals  have been  set  for the Task Force:

Expanding education and lifelong training opportunities
Improving work and family balance
Restoring labor standards, including workplace safety
Helping to protect middle-class and working-family incomes
Protecting retirement security

As part of the ongoing  process , Task Force has taken initiative to reduce  high repayments on college loans. College tuition has risen ten times faster  than the household incomes over the past few decades. Two thirds of Graduates take out loans to pay for their college expenses. Average debt is over $23000.00.

Presently  the  monthly payment for a single borrower earning $30,000 who owes $20,000 in loans  is  $228 a month under the standard 10-year repayment plan. According to the initiative taken by the  Task force, the  monthly payments have been projected to be reduced to $115.00 every month.

In addition to lowering monthly payments, The Task force is  proposing to keep the total cost of loan repayment manageable by forgiving all remaining debt after 20 years of payments, or 10 years of payments, for those in public service.

These changes build on the Income-Based Repayment (IBR) plan for student loans, was implemented in 2009. Aim of these initiatives was to make  college more affordable and accessible.

For more details :IBRinfo.org

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.

What type of the federal student loans can be repaid under the IBR scheme?

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