Income Based Repayment and Public Service Loan Forgiveness are Here!

Anne.Oeldorf's Flickr Photostream

Anne.Oeldorf's Flickr Photostream

The College Cost Reduction and Access Act of 2007 officially goes into effect today, July 1st, and income-based repayment (IBR) applications are now available from many major lenders, including the U.S. Department of Education.

According to IBRinfo.org, you should contact your lender directly to apply for IBR.

Also, take a look at the resources mentioned in this post as well as IBRInfo.org’s FAQ.

According to IBRInfo.org, if you have exhausted other avenues and still face “serious problems” applying for IBR, Continue reading

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College Cost Reduction Act – Basic Facts and New Resources to Help You

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Update, July 1, 2009! Check out this post about applying for Income-based repayment from your lender!

This July 1st, the College Cost Reduction and Access Act (CCRAA) of 2007 will take effect and includes provisions to make undergraduate and graduate education more affordable for aspiring social-impact professionals.

The CCRAA is a complicated piece of legislation that, if you take advantage of it, can help you retire college and grad school debt early.

The main programs that the CCRAA has created include:

Income-Based Repayment (IBR) — Caps monthly direct and guaranteed (FFEL) student loan payments based on the borrower’s income and family size. According to IBRinfo, “For most eligible borrowers, IBR loan payments will be less than 10 percent of their income – and even smaller for borrowers with low earnings. IBR will also forgive remaining Continue reading