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Student loan repayment options to expandSet to launch on July 1, 2009, the Income-Based Repayment plan is aimed at helping people who have a high level of student loan debt and a low income. The program takes several factors into account, including borrower income, family size and amount of the loan. Any borrowers who qualify are obligated to pay no more than 10 percent of their income towards their outstanding debt. Their monthly obligation is adjusted every year and after 25 years of repayments, the remaining balance is be completely forgiven. However, note that income-based repayment is only available on federal student loans, not for private student loans. Meanwhile, a second type of loan forgiveness program is focused on graduates who have gone into public service. Anyone who is employed by a nonprofit organization or the government can have their remaining debt forgiven after 10 years of employment and 120 payments. "This could not be coming at a more important time for student loan borrowers who need relief," Lauren Asher, acting president for Project on Student Debt, told the Detroit News.
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