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Student loan repayment program starts this weekThe Department of Education's new income-based repayment plan debuts on Wednesday, July 1, giving borrowers with limited incomes some relief from hefty student loan payments. Under the rules of the program, the amount paid every month is determined by how much the borrower makes - with the maximum payment capped at 15 percent of their total income. If you earn less than $16,000, you won't have to make any monthly payments. There is an added bonus for those who take part in the program: after 25 years of repayments, the balance of the loan is forgiven. Also, students who choose a career in public service - for example, a public health worker or federal employee - could see the remainder of their debt forgiven after only 10 years. Private student loans do not qualify for the program. Nor do federal student loans taken out by parents. However, federal loans administered through private lenders are eligible. The government hopes that graduates who may be struggling to pay for basic necessities due to student loan obligations will find some relief under the income-based repayment plan.
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