Federal Loan Forgiveness question

[bnwj89]

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Hey All,

I have a question about loan forgiveness. I have read about IBR (income loan based repayment) where if you are in a financial struggle, you only have to pay 10% of your pre-tax income for student loans PER YEAR, and then after 20 (or 25 depending on when the loan was taken out) years, as long as you have stayed in good standing, the federal loans will be forgiven.

However, I have also heard that this forgiveness is for anyone, as long as you make at least the minimum payments each month, for 20 or 25 years. Is this true? I called the federal student loan office and asked this question and the woman I got said yes, but did not seem too confident in her answer.

Thanks

 

[pharm B]

If you go here

http://studentaid.ed.gov/repay-loans/understand/plans

You can view the various options available. Each option's subpage includes a calculator to give you an idea of what you can expect to pay monthly and in total. There's also the non-profit option (which can be paired with IBR), giving you low payments for 10 years, followed by loan forgiveness. I'm not intimately familiar with the end terms of that pairing, though. Hopefully this points you in the right direction. 🙂