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  4 1 You should have her get in touch with ibr.com it is a program called income based repayment that can cut down the loan payments for ppl based on income Kristin Bell answered in Personal Finance about 1 year ago | Report 3 comments by Kristin Bell, The Doctor, and Kristin Bell… 1 0 Sorry the site is ibrinfo.org Kristin Bell commented about 1 year ago | Report 0 0 The $600 a month payment WAS from the IBR program The Doctor commented about 1 year ago | Report 0 0 Wow! That is an insanely high payment...I am wondering if she has consolidated her loans yet, because I have a lot of student loan debt and my payments are nowhere near that high. I can't imagine it being that high unless she has over $100,000 in debt which I am pretty sure is way above the limit for student loans unless you have tried to get a ph.d. Or m.d. or something. I'm really sorry to hear this though...I feel for her. Kristin Bell commented about 1 year ago | Report Enter your comment or ask a new question preview THIS IS A PREVIEW: Click "Post" to submit it or "Edit" to make changes. edit Please wait… This could take a minute if the tubes are clogged.

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  1 1 There's a lot of baggage that comes with garnishment - so it ain't really a bargain. The loan is in default. She won't ever be able to buy a car or house (and maybe not even rent a decent apartment). All her tax refunds and government payments (except Social Security) will be confiscated/withheld. She'll never qualify for more financial aid should she want to go back to school. In short, she's toast. Tell her to get out of default as quickly as possible and follow Kristen's advice about the IBR or ICR plan (income-contingent repayment plan, income-based repayment plan). They were set up right after President Obama's election and were designed specifically for people drowning in student loan debt and didn't have equivalent income to meet the standard repayment plans. The payments are quite doable, and after 25 years, the loan is forgiven if it isn't paid off. Do it. Do it right away. Bauhaus answered in Personal Finance about 1 year ago | Report 6 comments by Bauhaus, The Doctor, and Bauhaus… 0 0 But you have to be out of default to set it up! Bauhaus commented about 1 year ago | Report 0 0 She was in the IBR plan and wasn't able to make those payments... (That was the program that gave her the $600 a month payment plan) The Doctor commented about 1 year ago | Report 0 0 Wow. That's discouraging, LOTTL. These programs were specifically for people in need. Maybe check out the ICR. One of them (I forget which one) is based on payment being 15% of discretionary income. In other words, 15% of whatever she makes after 150% of the Federal poverty line (and that is based on family situation). If she's a single person with no kids, payment is based on 15% of whatever she makes over $15-16K a year. If her payment is still $600 after that calculation, she must be making some really, really good money. Bauhaus commented about 1 year ago | Report 0 0 When my husband was unemployed he contacted IBR to lower his monthly student loan payments. After they calculated everything his new monthly payment actually went UP and they said it was impossible to return it to the previous lower rate. So yeh, IBR is not the godsend everyone keeps saying it is. Mary Cornwell commented about 1 year ago | Report 0 0 The calculations use last year's tax return (adjusted gros income) to figure monthly repayment amount - so if there's an interruption of income or a lowering from the previous year, the repayment plan may not work in your favor. I'll have to check to see if there's a mechanism wherein you can file an adjustment to income so that your monthly payment reflects present income. Bauhaus commented about 1 year ago | Report 0 0 File taxes as married filing separately unless you are jointly consolidated. Mary, then have your husband fill out an Alternative Documentation of Income form and send that in--it allows the DoEd to take recent financial events into account in determining IBR payments. Griffin commented about 1 year ago | Report Enter your comment or ask a new question preview THIS IS A PREVIEW: Click "Post" to submit it or "Edit" to make changes. edit Please wait… This could take a minute if the tubes are clogged.

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