The Income-Based Repayment Program allows borrowers to repay their federal student loans with a monthly payment based on financial circumstances.
Borrowers in the IBR program could have loans forgiven
It’s probably the best option for people struggling to repay federal student loans, which now exceeds $1 trillion nationally.
The nation’s largest servicer of federal student loans, Sallie Mae, is failing to enroll as many borrowers into the program as are eligible.
According to the Huffington Post shows that relatively few of the loans serviced by Sallie Mae and eligible for IBR are enrolled in the program.
The exact cause of Sallie Mae’s poor performance in enrolling borrowers into the program is unknown.
Sallie Mae’s president suggested that helping borrowers take advantage of the IBR plan is too expensive.
Sallie Mae has other problems
The U.S. Department of Education has announced that Sallie Mae will be given the fewest number of loans to administer next year.
Sallie Mae’s contract with the Department of Education expires in 2014.
There are many people asking that the contract not be renewed because of the company’s poor performance in helping borrowers.
If you’re facing student loan problems contact us to discuss what options, including the IBR might be available.