Hurray!!! You’ve come to the end road of college and now you are in a dilemma to make a choice out of the numerous student loans options you have because you are not earning enough income that can keep up on all the loan payments. Lay your fears to rest, there is help. If you fall into the category of ‘partial financial hardship’, then you can be a part of those who can join Income Based Repayment (IBR) or The Pay As You Earn (PAYE) program. To meet the conditions of partial financial hardship can be very easy. All you have to prove is to make sure that your IBR or PAYE payment would be at less than the ten-year standard repayment plan.
What does “partial financial hardship” means?
Partial financial hardship simply means that your 10-year set loan payments are more than 15% of discretionary income.
If the calculations made by PAYE or IBR indicate you would have much less payments, you will be given opportunity to enroll for one of these repayment plans. You can run the numbers using different tools, you can also have one of Ameritech Financial IAPDA Certified Account Specialists run the numbers for you. There are also easy calculators designed by the Department of Education for this.
If you have many loans to attend to, and know your payment’s monthly capacity, you can use the loan calculator to see what total payments your loans would be when you signed up for IBR or PAYE. Using our Student Loan Financial Analysis and the personal budget analysis, we’ll provide you with the tools you need to make the necessary financial decisions optimized for your specific situation.
Income-Based repayment (IBR) happens to be the most widely accessible income-driven repayment (IDR) plan which as been existed from 2009 the loans are meant for the federal student. The income-driven repayment plans can be of help to borrowers in the sense that they can pay up their loans only with what they can afford based on their income and family size. There will be exoneration of debt by IBR if the debt is above 25 years of qualifying payments.
Are you a federal student loan borrower that is currently paying off Direct or FFEL loans? Then you may be eligible for IBR.It covers most types of loans that are made for federal students, but not meant for parents. To be eligible for IBR, your current monthly loan payments are compared with your income and family size. If your monthly loan payment requirements are higher than 15% of your discretionary income, This simply means that it will take more than 15% of all your earnings above the poverty level of 150% to end your loan payments on a 10-year standard payment plan.
IBR uses a sliding scale model to discern what you can avoid paying on your federal loans. Whenever your income becomes lower than 150% of the poverty level for family capacity, your loan payment requirement will be $0 per month. When your earnings are higher than the designated 150% poverty level amount based on your family size, your loan payment will be calculated at 15% of that income ABOVE the 150% line.
The Department of Education states that the subsequent types of payments will have to be implemented toward IBR’s 25 year loan forgiveness period
It’s important once you enroll in the IBR program to keep up on recertification for you to stay in the program. If you fail to do so, it might end up costing you thousands of dollars and take you out of the program. Ameritech Financial ensures that your certification is kept up to date and work on keeping you qualified until you finish the entire program so that you can save thousands of dollars in place of having to carry that cost.
Company: Ameritech Financial
Address: 5789 State Farm Dr. Suite 265, Rohnert Park, CA 94928
Contact Telephone Number: (800) 792-8621
Contact Fax Number: (866) 818-9026
Options are available to help
Most people do not realize that there are programs designed to help those who may be struggling with their student loan payments. Thousands of borrowers have trusted Ameritech Financial to be their advocate. Click here to find out what options are available. Our services could help you get back on track.Get Started Learn More