Are you struggling to keep up with large student loan payments as your career is taking hold? An income-based payment plan is probably a good idea. Loans can be structured such that you have lower monthly payments from the onset with a gradual rise as your career takes hold and incomes rises.
We know how hard it is making everything work those first few years after college. If your annual income is lower than your outstanding student loan debt, then you should consider an income-based payment plan. This will allow you to keep current and reduce your debt as your income rises.
Each monthly payment is calculated as a percentage of your monthly discretionary income. We use Federal standard guidelines to ensure you know exactly how the loan will be structured prior to entering into any agreement.
Generally, your payment amount under an income-driven repayment plan is a percentage of your discretionary income, and the percentage is different depending on the plan and when you took out your federal student loans. The chart below shows how payment amounts are determined under each income-driven plan. Depending on your income and family size, you may have no monthly payment at all. Send us a note, and we'll go over your options.