Two Plans Among The Others For Lowering Student Loan Payments

Every year there is more and more students, that is why every year there is more and more student loans plans or different kind of options by which banks are trying to keep up in battle with competition. That creates opportunities which, in other hand, you should take advantage of.
When it comes to student loans plans, important thing to know is that by these kinds of plans, there is always few options to help you lower your payments. In fact there is variety of options to choose from. By reading this article, we are hoping that you will find the best choice for you, and manage to lower your payments. It is not some kind of social programs that will give you more than they will take. But certainly, they give you the option by which you can resolve your money problems. So, let’s start.

If your current income is not on the level that you have hoped for, and it just can’t support your monthly student loan payments, option is to apply for Income-Based Repayment also known as IBR. With IBR your monthly payment are capped at 10 to 15 percent of your discretionary income.

Percentage depends on the time when your loan had been taken. Your loan balance usually will be forgiven after 25 or, in some cases, 20 year. Forgiveness also depends on the when you borrowed your loan. Now, we will jump to the good things about this plan. If your income is under payment possibility, and it makes impossible for you to maintain with your payments, than your payments could be as low as 0 dollars under IBR. Bad thing is that, in order to qualify your outstanding debt must be greater than your annual salary. And, like in many similar cases, any forgiven balance is subject to taxes.

ICR plan

Another option for lowering your student payments fee’s is student loans plan called Income Contingent Repayment plan, also known as ICR plan. ICR plan is available to most students on federal education program who are borrowers.

With this plan payments are capped at the lesser of two options: 20 percent of discretionary income, or what payment would be on a fixed, twelve year plan for payment, which is adjusted according to income of a borrower. After 25 years of payment all remaining loans will be forgiven.


Most of the federal students who are applying to this plan are eligible. Also, it gives you option in which your parents can apply for you. Only if they already are Parent PLUS borrowers who did consolidating of their loans. But, also, if happen, any forgiven balance is subject to taxes. These options are just two of many others. But, they are quite good options. It is fair to say that these options have their pros and cons, but newer the less, gives you a chance to start, or finish your studies. Take them under consideration, and see if they give you what you need.