Undergraduate > Graduate Loans

sk8rmom
Sun, 18 Jul 2010 05:44:10 +0000

payments on students loans will be limited to 10% of income and the loans altogether will be relieved after 20 years (10 years if in public service)



Under IBR, I believe the new 10%/20 year limit applies only to those who take their first loans after 2014…the current IBR cap is 15% and 25 years of payments until the balance, if any, is forgiven. Basically it works on a sliding scale, depending on inome and family size, so the payments could be as low as zero if you’re making less than 150% of the federal poverty level. But the interest will still accrue even if your monthly payment is not sufficient to cover it and 25 years is a very long time!