Greetings! I just got back from my trip and have a lot going on this week and next but I will do my best to keep up with posting. For today, I just wanted to tell all of you recent U.S. graduates out there that the Income Based Repayment (IBR) applications are now available from many major lenders, including the U.S. Department of Education. Contact your lender directly to apply for IBR. If you have Direct Loans from the U.S. government, go here: https://www.dl.ed.gov/borrower/OtherFormList.do?cmd=doViewRequirements wizardName=Repayment%20Plan%20Selection. If you aren't sure who is servicing your loans, go here to find out more info: http://www.nslds.ed.gov/nslds_SA/.
If, after you've contacted your lender and checked out the FAQs on the IBR site, you have serious problems applying for IBR, the Federal Student Aid Ombudsman's Office at the U.S.Department of Education may be able to help. You can call them to report a problem at 877-557-2575, email them at fsaombudsmanoffice@ed.gov, or fill out an online help form at: www.ombudsman.ed.gov. There is also still time to take action for loan forgiveness! In addition to lowering monthly student loan payments, the IBR program forgives any remaining debt—including interest— after 25 years. Most borrowers will pay off their debt before then, but under current law, if there's anything left to forgive after 25 years, the amount forgiven would be taxed as income to the borrower. A bipartisan bill in the U.S. House of Representatives, H.R.2492, would prevent the taxation of debt forgiven through IBR. Loan forgiveness is supposed to wipe the slate clean for responsible borrowers, not create a new financial obligation. If you haven't already, please take a moment to write to your representative and urge them to support H.R. 2492 and ensure there's really a light at the end of the tunnel.