Is student loan debt stopping you from starting your own business? The Income-Based Repayment (IBR) Plan can help
Is student loan debt stopping you from starting your own business? The Income-Based Repayment (IBR) Plan can help Income-Based Repayment is an existing payment option for Federal student loans. The Income-Based Repayment Plan supports young college grads, including those looking to start a business, join a startup, or work in a public service job by making Federal student loan repayment manageable. It can help you keep your loan payments affordable by using a sliding scale to determine how much you can afford to pay on your Federal loans-empowering you to take risks with new opportunities. . After working full-time for a year, he went to graduate school and got an MBA. He is a clean energy entrepreneur who recently started a business, and his annual income is $15,000. His undergraduate and graduate student loan payments total almost $500 a month. Since both of Mark’s student loans are federal loans, he was able to switch both loans to an IBR payment plan. Alison got a full college scholarship but is taking out loans to pay for graduate school. She will have to make payments on her Direct PLUS Loan, a federal student loan, when she graduates. She has a job offer from a nonprofit organization. Alison wants to take the job, but is worried about paying back her student loans on a $30,000 salary. When Alison graduates, her Direct PLUS Loan debt will be eligible for an IBR payment plan. After 10 years, her loans may be forgiven under the Public Service Loan Forgiveness program. Cory is a college student who is set to graduate next spring. Together with two friends, he plans on starting https://paydayloanadvance.net/payday-loans-ma/ a business right after graduation. He also already has a job offer from the company where he holds an internship. Working part-time for them, he will earn $25,000. He has a private loan with a $147 monthly payment and a Direct Stafford Loan with a $173 monthly payment. Although Cory’s private debt is not eligible for IBR, his federal student debt is eligible. *The above case studies are fictitious examples that represent how Income-Based Repayment and Public Service Loan Forgiveness can help students and recent graduates manage their student loan payments. Can’t see the case studies? View the accessible version. What Is Income-Based Repayment? Young entrepreneurs are key to our economic success now and in the future. If student loan payments are standing in your way, the Federal government can help. The Income-Based Repayment Plan can help you keep your Federal loan payments affordable with payment caps based on income and family size. For low-income student-loan borrowers, Income-Based Repayment limits loan payments to 15% of discretionary income. Last year, the President proposed, and Congress enacted, a plan to further ease student loan debt payment by lowering the IBR loan payment to 10 percent of income, and the forgiveness timeline to 20 years. This change is set to go into effect for all new borrowers after 2014-mostly impacting future college students. For a single graduate, Income-Based Repayment options look like the amounts in the table below. To find out what your payment would be, use the IBR Calculator. If you earn less than $20,000 in annual income, the Income-Based Repayment is zero. If your monthly Income-Based Repayment payment amount does not cover the interest that accrues on your loans each month, the Federal government will pay your unpaid accrued interest for up to three consecutive years from the date you began repaying your loans under the Income-Based Repayment Plan. After 25 years, any remaining balance on your Federal student loan debt will be cancelled. In...
read moreU.S. military repayment programs for medical loans
U.S. military repayment programs for medical loans With the Indian Health Service (IHS) Loan Repayment Program, eligible clinicians can receive up to $40,000 toward their educational debt in exchange for a two-year commitment to serving American Indian and Alaska Native communities. With this program, your contract can also be extended annually until all your student loan debt is satisfied. State-specific student loan forgiveness programs If you don’t qualify for federal or national loan forgiveness programs, you s. You can do an internet search to see what loan repayment programs might be available in your specific state. Here are two examples: Georgia Physician Loan Repayment The Georgia Physician Loan Repayment Program is one of several programs offered by the Georgia Board of Health Care Workforce. This program offers $25,000 each year for an initial two-year contract to physicians practicing family medicine, internal medicine, pediatrics, OB/GYN, geriatrics, or psychiatry. To qualify, physicians must practice in a health professional shortage area in a rural Georgia community. To learn more about physician loan repayment programs in Georgia or to apply, visit the Georgia Board of Health Care Workforce website. Maryland Loan Assistance Repayment for Physicians In exchange for a two-year service commitment to a health professional shortage area or medically underserved area, Maryland-licensed physicians may receive up to $50,000 per year toward their student loan debt. This program is available to physicians, physician assistants, and medical residents within their last year of residency. Many education benefits are available to U.S. military members, including repayment programs for those choosing a career in medicine who wind up with student loan debt. Air Force Health Professions Loan Repayment The Air Force Health Professions Loan Repayment Program offers $40,000 per year for up to two years (for a total of $80,000) in exchange for a two-year, active-duty commitment. It’s available to service members in various health professions, and can be used toward loan payments, interest, and other education or living expenses. Keep in mind that about 25% in federal income taxes will be taken out of the loan repayment funds before they’re disbursed. Army Health Professions Student Loan Repayment The Army Health Professions Student Loan Repayment Program is available to active-duty or reserve Army service members who work as a doctor, dentist, or other healthcare professional. If you qualify, you can receive up to $40,000 per year for as many as three years – for a total of $120,000 – toward your medical student loan debt. National Guard Health Care Professional Loan Repayment In exchange for a seven-year commitment to the National Guard, you can receive up to $250,000 toward your medical education debt. This is broken down as $40,000 per year for the first six years and $10,000 for the seventh year (with a lifetime cap of $250,000). This program is offered to healthcare providers in the Medical and Dental Corps, but may also include physician assistants, social workers, and veterinarians, depending on the year. Navy Health Professions Loan Repayment The Navy Health Professions Loan Repayment Program is available to new recruits, as well as existing, active-duty Navy service members. It offers up to $40,000 per year toward student loan debt (minus 25% for federal taxes, taken prior to disbursement). To be eligible, you must be fully qualified, in your last year of residency, or enrolled full-time in your last year of study and working toward a medical, dental, or osteopathic degree. You Massachusetts rapid cash must also be qualified for (or already hold) an appointment as a commissioned officer. Consider refinancing your medical school loans If you’ve considered all other options for repaying or forgiving...
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