This week’s Mullooly Asset Management video covers a financial planning topic that parents and teens alike should be concerned about. Tom and Brendan talk about managing your student loan debt this week. Student loan debt affects millions of Americans each year. However, there is a relatively unknown government program that could help you and your family with these costs.
Tom and Brendan talk about the Income Based Loan Repayment Program in this video. The program was started in 2007. It allows individuals to make payments based off their discretionary income. Less than 1% of Americans with student loan debt have even applied for the Income Based Repayment Program. Managing your student loan debt means seeking out all potential options for help. If the monthly payment you make is more than what you would pay under this program, you are eligible for enrollment. Graduate school PLUS loans, Stafford loans, and other consolidated loans all qualify under this program.
The best part about the Income Based Repayment Program is that after 20 years of paying 10% of your discretionary income towards your student loans…you’re done. This is not a joke. When the repayment period is over, the remaining balance is discharged. Talk about managing your student loan debt, huh?
Make sure to watch this week’s Mullooly Asset Management video to learn more about the Income Based Repayment Program. You can also read more about these federal income based plans by clicking here.