If you're underpaid and overburdened by federal student loans, you're in for some relief.
A new loan repayment plan kicks in next month that can significantly reduce your monthly payment - in some cases drop it to zero - and will forgive any lingering debt after 25 years.
"People need this more than ever. It's making its debut at the right time," says Edie Irons, a spokeswoman with the Project on Student Debt.
The new Income Based Repayment Plan is just one of the borrower-friendly provisions taking effect next month in the federal loan program. Variable interest rates on older student loans will be falling to record lows. Fixed rates on certain new undergraduate loans are due to drop. And Pell Grants awarded to the neediest students are going up. [Read the rest of the story HERE
THAT link has been obfuscated by the government [or the banking industry
Fortunately, you can still go here: http://www.finaid.org/loans/ibr.phtml
to find out about IBR's [Income-Based Repayment} for financial aid, which became law on July 21, 2009