Income Based Repayment Plans Options to Explore

With student loan debt in America reaching $1.3 trillion and loan delinquency up to 11.2 percent in the 4th quarter of 2016, repayment is becoming much, much harder for many borrowers. In fact, the Business Insider says more than one in ten borrowers are delayed in their payments by as much as 90 days.

If you’re in the same situation, studying income based repayment student loans and plans is a sound option. Read on for helpful pointers:

Income-based repayment

While the government offers income-driven plans, you’ll need to meet certain criteria before you can quality for the plan. First off, your existing federal loan bill should be greater than 10 percent of your income. Second, you should have borrowed the money after July 1, 2014. If those conditions match with yours, then you are legible to apply for the plan.

Pay as You Earn

If you don’t qualify for the first option, no worries. You can still try for Pay as You Earn plans. Make sure you figure out what your loan repayment will be under the program before you proceed.

Loan refinancing

This is another alternative to Pay as You Earn and IBR plans. However, you will still need to assess your finances to make sure you meet the requirements.

Getting help

Whichever option you choose, you’ll need help in applying for these plans. With so many other people who find themselves facing the same financial hardships and drawbacks you are, you’re bound to face plenty of competition for those programs and plans. One way to a smooth and hitch-free application is to get application assistance for those income based repayment student loans. Hire a service that will help you go through the application and documentation process. This way, you won’t send incomplete submissions or miss an important deadline and will be more likely to be approved for a repayment program.