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Feds urge students to check loan repayment plans


WASHINGTON (AP) — The Education Department says it will begin reaching out by email this month to about 3.5 million federal student loan borrowers. They will be encouraged to learn more about their repayment options, especially whether they qualify for an income-based repayment plan. The department says many borrowers will qualify if their federal student loan debt exceeds their annual income. For those who qualify, their initial payment could be as low as nothing a month. Under such a plan, loans are paid off over a longer period of time so the total amount increases, but the monthly payment amount is reduced. Borrowers working in public service may qualify to have their remaining loan balance forgiven after a decade of payments.


 

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