Are your monthly student loan payments killing you because your making peanuts??? There maybe hope for you! A new program called “income-based repayment” has come out, and it could dramatically reduce your monthly payment.
So how does income-based repayment work? Income-based repayment lowers your monthly payment if your yearly income is a lot less more than your total student loan debt. Not everyone will qualify. The Department of Education has said if you make $20,000 or less and are single, the most you will have to pay back each month on your loan is $47/month. This can extremely help a struggling college student fresh out of college.
What you make each year determines how much you will pay. Another example of loan repayment amount is making $35,000 per year. If you make that much, you will only have to repay a max of $235/year.
If you qualify for income-based repayment, you might not want to do it. Even though it might dramatically reduce your monthly payment, it will add to the total amount of your loan. If you can afford to pay your currently monthly, expertise advise to keep on paying your monthly payments.