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Miami Student Loan Income-Based Repayment Attorney

Repaying student loans can be stressful, and sometimes simply unaffordable. An Income-Based Repayment plan can help you repay your eligible federal student loans by lowering monthly payments to a level that you can afford on your salary. Ask an attorney today whether a repayment plan is a good option for you. Contact our Miami student loan income based repayment attorney today.

Eligibility

Only certain student loans are eligible for an Income-Based Repayment plan (IBR plan):

  • Direct Subsidized Loans;
  • Direct Unsubsidized Loans;
  • Direct PLUS Loans made to graduate or professional students;
  • Direct Consolidation Loans not repaying any PLUS loans made to parents;
  • Subsidized Federal Stafford Loans;
  • Unsubsidized Federal Stafford Loans;
  • FFEL PLUS Loans made to graduate or professional students; and
  • FFEL Consolidation Loans not repaying any PLUS loans made to parents.

Additionally, Federal Perkins loans are eligible if they have been consolidated.

Further, to qualify for an IBR plan, the required payments under IBR plan, which takes into account income and number of dependents, must be lower than what you would pay for a Standard Repayment Plan with a ten-year repayment period.

Repayment

The repayment amount in an IBR plan is based on your adjusted gross income, the number of your dependents, and your total student debt. The amount is recalculated annually. There is an exemption for those who are at or below 150 percent of the poverty line.

The repayment schedule on an IBR plan depends on when the loan was originated. If an applicant was a new borrower on or after July 1, 2014, the monthly payment will generally be about ten percent of his or her discretionary income, regardless of the amount of debt. You are a new borrower if you received a Direct Loan on or after July 1, 2014, and had no outstanding balance on a William D. Ford Federal Direct Loan Program loan or Federal Family Education Loan Program loan. Discretionary income is the amount between your income and 150 percent of the poverty line for your family size and state of residence.

For those who have students loans originating before July 1, 2014, the repayment amount will generally be 15 percent of discretionary income. In neither category of loan will the monthly payment amount be more than the amount that you would pay under the ten-year Standard Repayment Plan.

Forgiveness

For borrowers who received Direct Loans on or after July 1, 2014, the repayment period for an IBR plan is 20 years. For loans originating before that date, the repayment period is 25 years. If the loans are not fully repaid by the end of the 20-year or 25-year period, any remaining balance will be forgiven. Additionally, any remaining balance will be forgiven after ten years of qualifying public service employment under the Public Service Loan Forgiveness Program.

The requirements and benefits of student loan repayment programs can be confusing and complex, but Miami student loan attorney Julia Kefalinos can help determine whether you qualify and which option is best for you. Please contact us today at (305) 856-2713.

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