New program will help graduates with loan payback

Elizabeth Sias

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.