What is the “Income Sensitive” repayment option?
This repayment plan is available only after the consolidation is complete. You can obtain this documentation by clicking here; however you must wait to apply until you have received your disclosure statement. With this plan, your payments are based upon your income and are subject to annual review. This plan may be suited for you if you are experiencing extreme financial problems and may be in danger of defaulting on your loans. Key Factors • Payment obligations are calculated based on current income level and are adjusted annually based on expected total income. • Payments must cover the interest that accrues between scheduled payments. • Because the lower initial payments repay less of the principal, higher finance charges accrue over the life of the loan.
Related Questions
- If I have two or more Federal loan lenders/servicers and I opt for the Income Based Repayment option, is the IBR calculated payment divided among my lenders?
- How is the repayment of loan to be made? Is there a fixed EMI and whether there is an option of paying in cash or cheque?
- What is the Income Based Repayment Option?
