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]
