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New Federal IBR Program Could Drastically Lower Your Student Loan Payments

June 20th, 2009 · 6 Comments

Written by J.P. Wicklein

     Next week the federal government will launch their new Income Based Repayment (IBR) program.  This program can be a godsend for those struggling to repay hefty education loans.  Here’s a quick video that explains the new plan: 

     Most types of federally-backed student loans are covered by the IBR program – including Stafford loans.  Qualification for the program is based upon your debt-to-income ratio.  Check out this calculator to determine if you’re eligible.

     For more information on the Income Based Repayment program, or instructions on how to apply, I highly recommend visiting IBRinfo.org.

Tags: Loans · Student Loans

6 responses so far ↓

  • 1 April // Jun 23, 2009 at 11:04 pm

    Pretty cool post. I just stumbled upon your site and wanted to say
    that I have really enjoyed browsing your blog posts. Any way
    I’ll be subscribing to your blog and I hope you post again soon!

  • 2 kwt8011 // Jun 24, 2009 at 8:59 am

    My federal loans are due to reset next month, and I believe the rate is based off of the 13 week treasury, which is hanging around all time lows. I’m expecting interest around 3%…

  • 3 Financial Fellow // Jun 30, 2009 at 7:44 am

    April -

    Glad you like the post! I try to post at least a couple times a week. (Was on vacation this past week.) Thanks for the feedback! I look forward to reading more of your comments in the future!

    John (Financial Fellow)

  • 4 Financial Fellow // Jun 30, 2009 at 7:46 am

    kwt8011 -

    A 3% rate on a student loan is fantastic! Good deal for you! My student loans are somewhere between 3% and 4%. Thanks for your comments!

    John (Financial Fellow)

  • 5 Ed // Jul 1, 2009 at 4:35 am

    I have a problem with this program. It is just another step toward socialism - the concept of personal responsibility is disappearing. This is a similar situation to the housing crisis. How about choosing an educational option that you can afford? Adults are supposed to make these kinds of difficult choices; however, we are being turned into cattle - dependent on the government (and tax payers) to take care of us in every aspect of our lives. We are becoming so spoiled that few people have the stomach to make sacrifices. Congratulations to the posters on this page that are getting great interest rates, but what about the students that need loans 2-20 years from now when interest rates will certainly be higher due to the huge influx of money into the system? Oh, I forgot, Uncle Sam will take care of everything. There seems to be a complete lack of long-term thinking in this country - let’s just make the tax payer foot the bill and worry about the consequences later.

  • 6 Financial Fellow // Jul 1, 2009 at 8:40 pm

    Ed -

    Good points on taking personal accountability. If you borrow a boat load of money you should have to live up to the terms that were laid out when you took out the loan.

    I’m inclined to give a bit of a break to students who were, in large part, too dumb to really know better when they first took out the loans. Do you have a separate category for people 18 - 22 who took out money for their education? I don’t know that it’s the worst thing in the world.

    Don’t get me wrong, though, I’m on board with you 90% of the way. Poeple rely waaayy to much on the government to help them out. The country would be a much better place if people just took responsibility for their own actions and lived with the consequences.

    Thanks for the comments, Ed!

    John (Financial Fellow)

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