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Little Known Student Debt Relief Program Has Issues

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opednews.com

Income Based Repayment, or IBR, was held up to be a significant reform for low-income student loan borrowers; yet red tape and a lack of promotion has left the program to operate well below potential.

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At its inception, Income Based Repayment, or IBR, was described as real reform for federal student loan debtors. It promised debt relief for low-income borrowers and an alternative to the forbearance and deferment options used by loan providers. IBR works by limiting student loan payments to 15 percent of gross adjusted income. After 25 years, the outstanding balance is forgiven. Additional benefits apply to those working in certain nonprofit or teaching positions.

Former Project on Student Debt communication director Edie Irons told me in a July 2009 interview for my Open Salon piece " Finally! Student Loan Debt Relief Arrives for Many " that IBR could serve a million students with student loan debt. To date, according to the New York Times, it has served 920,000 students. Yet this year 5.9 million student loan borrowers have fallen at least 12 months behind on payments. "

[Read the entire article at Open Salon:

http://open.salon.com/blog/steve_klingaman]

 

Steve Klingaman is a nonprofit development consultant and nonfiction writer living in Minneapolis. His music reviews can be found at minor7th.com.
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

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