If you are looking to lower your payment or find relief from your student loan debt burden there are options available to you. Depending on your financial situation you could have your payments significantly reduced. There are three main programs available, all based on your income.
Income Based Repayment Plan
This plan is designed for anyone whose student loan debt is relatively high to their income, meaning they owe a lot and make moderate to low amounts each month. To qualify for IBRP you must have a partial financial hardship defined as an annual amount due on your loan exceeds 15% of the difference between your adjusted gross income and 150% of the poverty level. In other words, you would qualify if your monthly payment amount is higher than the amount you would be required to pay under the IBRP program.
Pay-As-You-Earn Plan
This plan is also designed for anyone whose student loan debt is relatively high to their income, but is also the lowest of the plans based on your income. To qualify for PAYE you must have a partial financial hardship defined as an annual amount due on your loan exceeds 10% of the difference between your adjusted gross income and 150% of the poverty level. In other words, you would qualify if your monthly payment amount is higher than the amount you would be required to pay under the PAYE program.
Income Contingent Repayment Plan
This plan is designed to also lower payments based on your income, but is offered to those who may not qualify for IBRP or PAYE plans. This plan is based on your adjusted gross income, family size, and the total amount of your loans. Unlike IBRP or PAYE plans, the ICRP is not susceptible to fluctuations of the poverty line.
While these options may be available to you not all loans are eligible for these solutions. A student loan lawyer can help you find the best solution and even apply for you to maximize your chances at a successful arrangement.