A new loan repayment plan is intended to help recent graduates with modest incomes who are paying back student loans.
The U.S. Department of Education started a new program Wednesday that will cap monthly payments on federal student loans and forgive the remaining balance after 25 years, the Star Tribune reported.
Eligibility for the program, called Income-Based Repayment, depends on the person’s income and loan size.
An estimated 1 million people are expected to enroll. For most of them, monthly payments would be less than 10 percent of their income.
For more information on the program, visit www.ibrinfo.org.
