No problem. You are referring on the so called Income-Sensitive Repayment Program. Is a very useful program that helps those who have low incomes, to pay their loans. The payments under that plan goes up or down, based on your annual income.
So that plan could be perfect for making lower payments, huh?
Absolutely. If you're a Federal Family Education Loan Program user, then you could for this reduced payments plan.
Umm, that's quite interesting. I have a loan, under the figure of FFEL Plus. Is that type of loan eligible for the reduced payments?
It is. The Federal Family Education Loan Plus program is one of the types of loan under te reduced payments option.
And what about Unsubsidized Federal Stafford Loans? I have an acquaintance that has one of those.
Yes, is it eligible too.
The way to repay my loan under this plan is still on a monthly basis, right?
That's correct. The payments are still on a monthly base, but they increase or decrease based on your annual income and are valid for a maximum time period of ten years.
Do yo have more loans owned by U.S Department of Education?
Yeah, i have two of them.