student loan repayment options

New push to ease student loan repayment

Jun 7, 2012
The federal government will streamline the process that borrowers use to get their payments capped at just 15 percent of their salaries.
Posted In: frederal student loans, student debt, student loan repayment options

A college graduate and savings

May 9, 2012
I am a 25-year-old college graduate with approximately $27,000 of student debt. I have been unable to find a job since graduating and am making $1,000 a month, give or take. I now have $1,500 in my checking and $1,000 in savings. This is the most money I have had at one time and am unsure how best to utilize it. My savings account is for emergencies. My budget allows for $150 a month of disposable income. Should I contribute what remains of my disposable income to the loans, save it or try to invest it? I am currently paying $100 a month to the loans to maintain activity. Thank you for your time. Nathaniel, Raynham, MA
Posted In: college graduate, job market, Savings, student loan repayment options

The Income Based Repayment option for student loans

Apr 13, 2012
I'm helping my girlfriend organize her student loans while she's wrapping up her final semester of architecture (grad) school. The Income Based Repayment plan is likely her best option for repayment. She's going to owe about $135,000 and expects to make about $65,000 in her first year out of school. Yes, it's a lot of debt! However, there is a significant amount of uncertainty around the program. There are two versions. In one, you pay 15 percent of your income over 150 percent of the poverty line for a maximum of 25 years. Anything left after the loan is forgiven. There is a newer version for borrowers' 2012 loans that is only 10 percent over 20 years. I'd like to verify that she's eligible for this newer program. Matthew, Brooklyn, NY
Posted In: student loans, student loan repayment options, income-based replayment plan