Consolidating stafford and perkins student loans

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IBR will also forgive remaining debt, if any, after 25 years of qualifying payments.

As an example, if your initial salary is ,000 with a household size of one, you can expect a maximum monthly payment of 2.91. Government will pay that interest on your Subsidized Stafford Loans for your first three years in IBR.

Your reduced payment under IBR may not cover the interest on your loans. After three years and for other loan types, the interest will be added to the total amount you owe.

While your debt may grow if your payments are low enough, anything you still owe after 25 years of qualifying payments will be forgiven.

Initial payments generally cover interest only for the first few years—meaning that you won’t begin beating back the principal loan until after that period.

(That’s your personal family size – i.e., you spouse kids; not you mom & dad.) For eligible borrowers, IBR loan payments will be less than 10% of their income—and even smaller for some borrowers with low earnings.

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You can calculate your eligibility for an IBR plan here.

If you believe you’re eligible, you’ll need to contact your loan servicer to apply.

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