Consolidating graduate loans over 40 000
There are many benefits to the program, one of which is forgiveness on the first three years of unpaid interest from when you enroll into the Income Based Repayment plan for the subsidized portion of your loan.
Another benefit of the Income Based Repayment is that it offers, typically, the lowest payment for borrowers in financial hardship. This page is designed to explain how the calculations are made, and also to assist you on when it may be wise to choose one repayment plan over another.Each has their benefits, and we here at Student Debt Relief let our clients make the final decision as to which option they think will benefit them the most in the short and long term.The four repayment plans are the Standard Repayment, Graduated Repayment, Income Contingent Repayment, and finally, the Income Based Repayment.The Income Based Repayment plan is by far the unique in the Student Loan Forgiveness program, and often the most beneficial.The term is always based on the size of the loan, in which case you can use the chart below.
Depending on your income and family size, the standard repayment plan can be a good option for you if The standard repayment plan allows you to take care of your loans on time if you are making regular and full payments on them.
You will pay less interest on a standard repayment plan than you will under the graduated.
The amount of your payment can never exceed 15% of your adjusted gross income over the poverty line for your family size.
If you are married and file jointly, your spouse’s student loan indebtedness can be taken into account that can further lower your payment.
You may want to take advantage of an Income-Based Repayment if The calculation for the Income Based Repayment is AGI – (Poverty Line x 150%) = Y (Y x .15) / 12 = IBR PAYMENT If you would like to see what your income based repayment could be, click here.
Click here for additional information regarding the Income Based Repayment Plan In the standard repayment plan, the payment on your loan is calculated like any normal loan payment, based up the size of the loan and also the term of the loan.