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Feds offer lower payments on some existing student loans

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Today’s New York Times includes a story detailing a new payment plan available to people with lower incomes who are paying off student loans.

Perhaps it would be a help to you, or to someone you know.  Here are a few excerpts and links:

clipped from www.nytimes.com

New Plan Ties Reduced College Loan Payments to Income

For the first time in years, there is good news for college students who borrow to pay for their education.
Starting Wednesday, the federal Education Department will begin offering a repayment plan that lets graduates reduce their loan payments, based on their income.
While the interest rate cut applies to new loans, the new repayment option is available to borrowers who took out federal loans or who used a federal consolidation loan to combine their higher-education debts.
The extended payment program, called “income-based repayment,” limits what borrowers have to pay to 15 percent of the difference between their gross income and 150 percent of federal poverty guidelines. After borrowers make payments on loans for 25 years, the balance is forgiven. (The Education Department already offered an “income-contingent” repayment plan, which was similar, but less generous.)
the Education Department has set up a Web site with a calculator
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