New federal student loan program may ease burden on college students

LA CROSSE, WI (WXOW)---In this economy, college students are going to school to get a job, then getting a job to pay for school. But now a new program called Income Based Re-Payment may help students lighten the load.
WTC Financial Aid Assistant Shirley Heffner says, "The intent of the program is to reduce student loan payments for those who are suffering some sort of financial hardship."
Income-based repayment or IBR is a new way to make your federal student loan payments more manageable, and if you're a teacher or work in government or at a nonprofit organization, you might qualify for a new type of public service loan forgiveness after 10 years of eligible payments and employment.
Here's how it works: If you owe more in financial aid loans than you currently bring in annually, you may qualify for the IBR program. Other factors are considered in the application process, like your marital status, how you file your taxes, and the number of children in your household. For those who qualify, their monthly student loan payments may be cut in half, and your payment may be forgiven over time.
Heffner says, "The benefit for students is not only fo they free up some disposible income, they may also in the future be eligible for loan forgiveness after 25 years of payments made under income based re-payment."
This program is still very new, it was just introduced July first, so it's best to talk to your lenders to see if you qualify for the IBR program.


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