Bank Of North Dakota Student Loan Login
These income-based student loan payments will be calculated as 15 percent of the amount by which a borrowers adjusted gross income exceeds 150 percent of the poverty line. (For individuals the 2009 poverty line is $10830 in all states except Alaska and Hawaii. The complete federal poverty guidelines for 2009 are available on the website of the U.S. Department of Health and Human Services.) For example: 150 percent of the current individual poverty line of $10830 is $16245. If a borrowers annual adjusted gross income is $25000 the monthly payments on her or his eligible student loans would be capped at $109.44 - 15 percent of the difference between $25000 and $16245 divided by 12 months. If a borrowers annual adjusted gross income is $40000 the monthly payments on any eligible student loans would be capped at $296.94 ($40000 - $16245 multiplied by 15 percent divided by 12). Income-based monthly payments will be adjusted annually based on a borrowers federal tax return from the previous year.
Other college loans are ineligible: Private student loans. The income-based repayment program applies only to federal student loans. If youre having problems meeting the monthly payments on your private student loans you should contact the lenders to see if theyre willing to work out more affordable repayment plans for you. Keep in mind though that private student loans typically have less flexible repayment options than federal student loans. Federal PLUS loans. If your parents took out PLUS parent loans to help you pay for college they wont be able to take advantage of income-based repayment on their PLUS loans. Consolidation loans that included PLUS parent loans are also excluded from income-based repayment. Any Grad PLUS loans you took out as a graduate student however as well as consolidations of Grad PLUS loans are eligible.
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2) Work with the lender to ensure that you receive duplicate copies of monthly statements and periodically check your credit report to make sure your credit is still in good standing. Also bear in mind that being a co-signer on an outstanding loan may reduce your overall creditworthiness since the loan debt will be viewed as a liability. 3) If your primary borrower communicates to you that s/he is having difficulty making the monthly loan payments contact the lender immediately. For federal college loans ask about your loan deferment and forbearance options. Private student loans generally dont offer the same deferment and forbearance benefits as federal student loans but some private student loan lenders may be willing to discuss a deferred payment arrangement or alternative payment plan.
A Brief History. Student loans really did not pop into existence in America until 1958 under the National Defense Education Act. 1. These loans were offered as a way to encourage students to pursue math and science degrees to keep us competitive with the Soviet Union. 2. In 1965 the Guaranteed Student Loan or Stafford Loan program was initiated under the Johnson Administration. Over time additional loan programs have come into existence. The necessity of loans for students has become greater as the subsidies universities receive have fallen over time. Take Ohio State for example. In 1990 they received 25% of their budget from the state as of 2012 that percentage had fallen to 7%. In the absence of state money universities and colleges have increased tuition to cover the reduction in state money.