Managing Your Student Loan Debt

The United States is one of the only countries in the world that has private higher education. To compensate for the fact that college is not free for all to attend, the Government and private lenders offer student loans which many view as a great investment towards the futures. Even then graduates can have difficulty repaying those loans. Lenders offer borrowers many methods to repay their loans but one of the newest and least known about methods is the IBR (Income-Based Repayment Plan).

Available since 2009, this initiative allows borrowers who have federal student loans that have enough debt relative to their adjusted gross income to qualify. An individual would qualify if it would take more than 15% of whatever they earn above 150% of the poverty level to pay off their federal student loans on a standard 10-year payment plan. This is a way for borrowers who make a modest income but have sought for higher degrees to be able to make their monthly obligations without breaking the bank. Sometimes, IBR can seem intimidating to borrowers and the application process can seem complicated, but the complications of applying for the loan are greatly outweighed by the benefits. 

•  You pay $0 of your loans if you earn less than 150% of the U.S. Department of Health and Human Services Poverty Guideline for your family size, all the while remaining in good standing and not defaulting on your loans.Your IBR monthly payment is based on your annual Adjusted Gross Income (AGI) and the size of your family.
• The government will pay your unpaid accrued interest for up to 3 consecutive years from the date you began as a member of the IBR program on subsidized loans. If your monthly IBR payment doesn’t cover the interest that accrues monthly on your loan, the government pays the unpaid accrued interest on Direct Subsidized Loans or Subsidized Federal Stafford Loans.  You are responsible for paying the interest that accrues on unsubsidized loans during this three-year period.
•  Limits the capitalization of interest- While you have the partial financial hardship, interest that accrues but is not covered by loan payments will not be capitalized, even if the interest accrues during a deferment or forbearance.
•  After 25 years your loan is canceled- If an individual repays under the IBR for 25 years and meets certain other requirements, their remaining balance will be canceled.
• 10 year Public Service Loan Forgiveness- If an individual, while being employed full-time for a public service organization, makes 120 on-time full monthly payments under IBR or other qualifying repayment plans, they may be eligible to receive forgiveness for their remaining balance of their loan.

This formula to see if you might qualify for the IBR program is available at a variety of online websites, like www.studentaid.ed.gov and www.ibrinfo.org.  

October is Adopt-A-Shelter-Dog Month!

October is extra special month because it’s Adopt-a-Shelter-Dog Month. This is a time to pay tribute to all things canine and give some thought to helping homeless pups find homes. The ASPCA sponsors this month by hosting adoption events and has set up a special portion of their website, ASPCA.org, which is entirely devoted to shelter dogs. Whether you’re an experienced shelter dog parent or considering becoming one, this section of their site will have all the information you need to be completely informed on Shelter Dogs. You can learn how to find the right dog for you, use their nationwide search tools to find your new companion, and read about how to keep them happy and healthy. In honor of this month, the Employees of Merritt Webb have sent in pictures of their own furry, four-legged friends. Head over to http://tinyurl.com/ctr6lsa to take a look!

Remember, there are millions of wonderful, adorable shelter dogs in our country who need homes, so please consider adopting today!