Thursday, November 15th, 2018
Category: Student Loans
The Intricacies of Income-Drive Repayment Plans
A recent report from the US Department of Education's Office of Inspector General reveals that enrollment in income-driven repayment (IDR) plans - which allows borrowers to repay their federal student loans based on their income, household size and state of residence - has increased substantially in the last five years (U.S. Department of Education, 2018).But with five income-driven repayment plans to choose from, it can be overwhelming for borrowers to choose the best one for their situation, especially when so many of the basic terms and conditions look the same. In this session, we'll dissect each of the IDR plans and dive into the details related to eligible loans and borrowers, monthly payment calculation, payment caps, interest capitalization and subsidies, repayment period, loan forgiveness, the application process and what happens if you leave the plan.