New Jersey residents who are harboring student loan debt may be unaware of income-driven repayment programs that they may be eligible for. The federal government has begun offering income-driven repayment plans after realizing that many Americans simply cannot afford to make their monthly student loan payments on a standard repayment plan. Income-driven repayment plans lower the borrower’s monthly payment amount and any outstanding student loan debt on the borrower’s account is forgiven after a period of time. These types of plans are typically twenty-five years in duration.
Income-driven repayment plans protect borrowers on the downside. If a borrower loses his or her job for any reason, they can prove a change of circumstances to their loan servicer and get their payment lowered to as low as $0 per month. Even $0 per month payments count as payments toward ultimate student loan forgiveness on an income-driven repayment plan. Without being on an income-driven repayment plan, the borrower’s monthly payment amount does not change in response to their personal change in circumstances. Therefore, a borrower could sustain a severe injury that puts them out of work and their monthly student loan payment could remain the same. Many borrowers experience payments higher than $600 per month on a standard repayment plan. If the borrower cannot work and misses his or her payment, the borrower can go into default and experience severe consequences such as garnishment. On an income-driven repayment plan, the borrower can rest assured he or she is protected and that his or her monthly student loan payment will never be more than he or she can afford. Student Loan Law Group assists borrowers in applying for these types of plans.
It is important to take quick action to resolve student loan problems before they grow and become increasingly frustrating and expensive issues to resolve.
For more information on student loan debt management, visit Student Loan Law Group’s website at www.StudentLoanLawGroup.com or call 888-843-1706 to speak with a representative today.