the more you prove that you need the money, the more you will get it
Philadelphia, PA (PRWEB) December 08, 2014
Debt Consolidation USA recently shared in an article how repayment of federal student loans can be a little bit easier with the different repayment plans available to its borrowers.The article titled “4 Income-Driven Repayment Options For Your Federal Student Loans” looks at the different options to help make the payment manageable.
The article starts off by explaining how student loans have increased in the past couple of years. It has steadily gone up even during the Great Recession in 2008. It has breached the trillion mark and has kept increasing even after that. It has already overtaken the debt amounts of the credit card industry as well as auto loans.
Federal student loans are considered to be the easiest to qualify for since it is need-based. It simply means that the more borrowers prove that they need the money, the more they will get it. This is in stark contrast to private student loans where students need to show proof that they have the ability to repay the loan through their credit score.
The article starts off by pointing out how the Income-Based Repayment Plan or the IBR works. A student loan borrower who took out the loans prior to July 1, 2014 will have to look at 15% of their discretionary income as the basis in computing for their monthly payment. If the borrower took out the loan after July 1, 2014, the rate would be 10% of the discretionary income. The repayment time frame for this plan is between 25 to 20 years.
The Pay As You Earn Repayment Plan will compute your payment amount at 10% of your discretionary income payable in 20 years. To read the article, click this link: http://www.debtconsolidationusa.com/student-loans-2/4-income-driven-repayment-options-federal-student-loans.html