Crushed by Student Loans? Help's Coming
If you're a recent graduate who's struggling to repay your loans, help is on the way. Starting July 1, the new Income-Based Repayment program can reduce the loan payments of grads with high debt and low incomes to a little as zero. If you owe more than you earn in a year, you will probably qualify.
Income qualifications: The program considers any income earned above 150% of the federal poverty level discretionary. For single people in the continental U.S., that amount is $16,245. It's higher for people with dependents and residents of Alaska and Hawaii.
Of that amount, no more than 15% should go to student loans. If you make less than 150 % of the poverty level, meaning you have no discretionary income, your payment would be zero.For people earning more, payments would be calculated based on a sliding scale. For example, the traditional 10-year repayment plan might call for $350 a month on $30,000 debt. Under the Income-Based Repayment program, a person who makes $30,000 would pay only $170. The program offers a calculator on its Web site. If your payments don't cover your loan interest, the unpaid interest will accrue but it won't compound as it would in traditional deferral programs. In other words, interest will not be charged on interest. Any balances will be forgiven after 25 years. If you enter certain public service fields, the program forgives balances after 10 years.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV