How Apply For Student Loan Forgiveness, Apply early,The best time to file for income-based repayment (IBR) is before July 1st of each year. If you fil
How Apply For Student Loan Forgiveness
1. Apply early
The best time to file for income-based repayment (IBR) is before July 1st of each year. If you filed after that date, you would need to wait until July 1st of the following calendar year to have your eligibility verified. Therefore, if you want to qualify for IBR, you should submit your application no later than June 30th of any given year.
2. Follow the rules
There are strict guidelines in place regarding how much money you make and what type of job you hold in order to qualify for IBR. You cannot work at a job that earns $100,000 or more per year; however, if you are working at a job that earns less than $50,000 per year, then you still may be able to qualify for IBR even though you do not meet the threshold amount.
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3. File online
You don’t have to visit a bank branch or go through a long waiting line. Instead, you simply use the Federal Student Aid website to complete your application for IBR. Your application will take about five minutes to fill out.
4. Start Repaying
Once the Department of Education verifies your eligibility, you will start repaying your student loans under IBR. Payments will be based on your salary, not on your taxable income. Each month, you will pay 10% of your discretionary income. Discretionary means that you can spend any excess cash you earn over the federal poverty level without paying taxes on it. In 2015, the federal poverty level was set at $11,670 for an individual and $23,850 for a family of four.