Which of the following is true regarding the income based repayment plan (IBR) f
ID: 2708672 • Letter: W
Question
Which of the following is true regarding the income based repayment plan (IBR) for federal government student loans?
You always have the option to choose IBR and with it, no matter how much you owe, your payments will never be higher than 15% of your disposable income. And after 25 years in the program, even if you still owe money, it's dismissed.
With newer student loans it's even better. They qualify for the Pay-as-you-Earn program, where your payment will never exceed 10% of your disposable income, and after 20 years of payments any remaining balance is dismissed.
The income based repayment plan is a key reason why it's well worth taking out federal government student loans, if they will help you to graduate and/or get better grades by having to work less so you can study more. But, of course, you should never take out private student loans, which are the most dangerous type of debt available anywhere.
You always have the option to choose IBR and with it, no matter how much you owe, your payments will never be higher than 15% of your disposable income. And after 25 years in the program, even if you still owe money, it's dismissed.
With newer student loans it's even better. They qualify for the Pay-as-you-Earn program, where your payment will never exceed 10% of your disposable income, and after 20 years of payments any remaining balance is dismissed.
The income based repayment plan is a key reason why it's well worth taking out federal government student loans, if they will help you to graduate and/or get better grades by having to work less so you can study more. But, of course, you should never take out private student loans, which are the most dangerous type of debt available anywhere.
All of the above.Explanation / Answer
With newer student loans it's even better. They qualify for the Pay-as-you-Earn program, where your payment will never exceed 10% of your disposable income, and after 20 years of payments any remaining balance is dismissed
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