Do not let your student loan go into default. Many income repayment options are not provided to defaulted loans. A good portion of federal loans cover one or more of the income drive plans. Income-driven repayment plans are designed to make your student loan debt more manageable by reducing your monthly payment amount. Lower monthly payments are available with the three shown below.
- Income-Based Repayment Plan (IBR Plan)
- Pay As You Earn Repayment Plan (Pay As You Earn Plan)
- Income-Contingent Repayment Plan (ICR Plan)
The income based repayment plans plus the 20 year forgiveness will go a long way to making your student loan debt more manageable. Not to forget that many third party collectors for student loan debt are seeking legal action against defaulted student loan which might land you fighting in state court and a civil action is a reportable event on your credit report.