For those struggling under the weight of too much student loan debt, some new forms of relief are now available. Those working in low-income fields may be eligible for an Income-Based Repayment Plan, which became available the first of this month. An article on Kiplinger.com used an example of someone making $20,000 per year with $30,000 of Stafford loans charging 6.8 percent interest. This person could see their payments drop from $345 per month to just $50 per month. And any remaining balance after 25 years would be forgiven. This calculator will help you determine if you qualify and how the plan would change your payments. To apply, contact your lender.
Another new student loan program is for people working in public service such as government workers, non-profit organization employees, teachers, nurses, and more. Such workers may qualify for loan forgiveness after making 10 years’ worth of payments.
I meet lots of people in workshops who are buried in student loan debt, so these new programs should come as good news.