Starting this week anyone that has a balance due on a Government Student Loan can apply to reduce the payback rate to 15% of their income.

For those people making under $16,000 payments would be eliminated all together.

To participate in the IBR Plan, you must authorize the U.S. Internal Revenue Service (IRS) to inform the U.S. Department of Education (ED) of the amount of your income.

Forgiveness of balances are also available for those who have paid on their loans for 25 years or for those who have worked in the public sector for at least 10 years.

The progam announced last year was put in place to help those that choose careers with lower incomes that help our communities.

• Interest will still accrue during the deferment period
• The parent borrower will be sent interest statements and will have the option of paying the interest during the deferment period
• The unpaid accrued interest will be capitalized (added to the principal balance) at the end of the deferment period
• Direct PLUS loans with an earliest disbursement date prior to July 1, 2008 are not eligible for this deferment
• If you have questions, please contact the Direct Loan Servicing Center at 800-848-0979. Hearing-impaired borrowers can call 1-800-848-0983.

https://www.dl.ed.gov/borrower/QCNews.do