Spring 2011 graduates entering re-payment
November is the month when students who graduated in May will start to see statements arriving in the mail from their student loan servicers. With educational debt poised to reach 1 trillion dollars next year, anxiety about student loan debt is at an all time high.
Take a deep breath. There is help available.
- If you don’t know exactly what you’ve borrowed, you should. Visit http://www.nslds.ed.gov.
- Stay in touch with your loan servicer. Keep your contact information up to date and call if you are unable to make payment.
- Can’t make your payments? Talk to your lenders about repayment options.
One of the bright spots in student loan repayment is Income Based Repayment, a Direct Loan repayment option that is sensitive to income and family size. IBR payments are 15 percent of discretionary income. 2012 IBR will drop to 10% of discretionary income.
|
Annual Income |
$10,000 |
$15,000 |
$20,000 |
$25,000 |
$30,000 |
$35,000 |
$40,000 |
|
2011 IBR Monthly Payment |
$0 |
$0 |
$46 |
$108 |
$171 |
$233 |
$296 |
|
2012 IBR Monthly Payment |
$0 |
$0 |
$30 |
$72 |
$114 |
$155 |
$197 |
|
Payment |
|
|
|
|
|
|
|
Borrowers who are unemployed or in financial hardship can request deferment or forbearance from their loan servicer. Keep
in mind that deferment and forbearance is a limited form of relief. Addressing your payment plan by moving to an income based repayment plan may be a more productive way to gain relief.
Visit the Consumer Financial Protection Bureau to learn more about student loan repayment.
PC(USA) Student Loan borrowers can contact our loan servicing agency, The Student Loan People by calling toll free (800) 693-8220 or visiting www.thestudentloanpeople.com to request deferment/forbearance. There is paperwork that must be completed. PC(USA) borrowers also receive a .5 percent reduction to their interest rate when they sign up for Electronic Funds Transfer.
