Private College Student Loan

Would the Income Based Repayment (IBR) program help my wife and I?

I have about $40,000 in federal student loans which I consolidated with a private lender. My wife has about $20,000 in federal student loans which she has also consolidated. We both work in non-profit fields: I take care of two men with CP and MR, and she's a case manager for troubled youths. From what I understand, we can consolidate again into a federal direct loan and then apply for IBR. Since my wife and my combined yearly income is about $40,000, I would end up paying 7.1%, or $236/month. When my wife applies for the IBR, she'll have to claim the same $40,000 as a yearly income and be put in the same 7.1% bracket and have to pay $236/month. Together that's $473/month--about what we're paying now. Am I missing something, or are we getting shafted because we're married? Is there any provision in the IBR that takes into account our situation? Thanks for your time. my wife and me, I guess I should say.

Public Comments

1. Income-based repayment is only available for federal student loans, such as the Stafford, Grad PLUS and consolidation loans. It is not available for Parent PLUS loans or for consolidation loans that include Parent PLUS loans. (IBR is not available for Perkins loans, but it is available for consolidation loans that include Perkins loans.) It is also not available for private student loans. Because you have consolidated your student loans with a private lender, this makes you uneligible for the program Here is a link to Finaid. Good luck! www.finaid.org