RANCHO CORDOVA, CALIF (June 5, 2009) -- Financial aid administrators anticipating questions from students about the new Income-Based Repayment (IBR) plan are in luck. There's a helpful new tool that can easily be shared with student borrowers.
EdFund has created an IBR calculator, which allows student borrowers to enter some basic financial information and arrive at an estimation of whether they qualify for the IBR and, if so, what their anticipated monthly payment would be. Student borrowers can access the online calculator at www.edfund.org/calculators/IBR or by clicking on the "Student Loan Borrowers" tab then on "Repaying Your Loan" and "Repayment Plans."
The new IBR plan:
- is available to all borrowers but requires students demonstrate partial financial hardship to qualify;
- allows payments at 15 percent of the borrower's discretionary income (this figure could be as small as zero);
- adjusts payments annually based on a borrower's Adjusted Gross Income and family size; and
- goes into effect July 1, 2009.
Need something you can provide students that features an easy snapshot of the types of repayment plans available? EdFund has created a Loan Repayment Rack Card, which is available for order at no cost. Just click on "Forms & Publications" and search for it by name, or enter the catalog number "I-42."
EdFund, a nonprofit public benefit corporation, is one of the nation's leading providers of student loan guarantee services under the Federal Family Education Loan Program. EdFund offers students a wide range of financial aid and debt management information while supporting schools with advanced loan processing solutions and default prevention techniques. Operating as an auxiliary corporation of the California Student Aid Commission and founded in 1997, EdFund processed more than $9.3 billion in student loans in 2007-08, manages a portfolio of outstanding loans valued at $35 billion and provided services and support to nearly one and a half million students--helping over 22,800 borrowers rehabilitate their loans. EdFund is headquartered in Rancho Cordova, Calif. with regional staff located throughout the nation. For more information on EdFund, please visit the Web site at edfund.org.
Posted 06/08/09 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
