Received another call from Sallie Mae first telling me I forgot to signed the IBR form when i mention, why then wasnt it sent back so it could be signed I found out it was. Then I was informed they had to contact the IRS and my taxes. I explain to them I did what I was told to do which was to mail copy of my taxes < complete with the electronic statement that it was accepted since i do my taxes on line hence no reason to contact the IRS for I did what tehey told me i could do.
Then i was told i would be getting a letter in the mail stating how i was accepted for the IBR and amount. When I told them i was way below the poverty guidlines, hence should be -0- the person on the other end got a little * snotty*. So now shall play the waiting game and count how many times I get calls from them since none of them bother to look at my file and see how I was accepted.

IBR may not benefit all. One should use the IBR calculator to get the approximate payment - and - do not be surprised that your payment will be more under this plan than what you currently pay. For many IBR will not be of benefit whatsoever especially during these economic times. One way or another the FEDS will still get all their money from you. And with government, public service and other jobs that qualify under this program there are fewer jobs available not to mention the fact that jobs in these areas are suffering tremendously with reductions-in-force and major lay-offs. One should note that with IBR plans you will probably have to re-consolidate your loans with the government as the Direct Lender and not a loan servicing company. Very confusing and of little benefit - especially for non-traditional students.

I left a corporate job to work in a more altruistic area, went back to university and did several degrees back to back. Partially paid some of my Student Loans whilst in school.

Had near perfect credit from the age of 18-36 and had paid 85% of my previous student loans in 2 years, before returning to school. Have since learnt that student loan companies only live in the moment and previous fiscal responsibility to your previous student loan debts count for naught.

Moved with my husband 2 years ago, Husband has job, but I kept/keep looking and applying, two years on and nothing and can no longer meet student loans. Wrote to all my lenders explaining my situation and asked them to work with me and allow me to pay a monthly payment I can afford to make until I have a monthly income.

What I learned: That the student loan companies are not really interested in working with you. If you are late then you are treated and spoken to like you are the worst criminal in the world. Despite the fact that you made many payments on time for many years and usually in advance of due date. Suddenly organizations who claim to be your advocates have turned into manipulative bullies. Who like to tell you what a horrible person you are.

Many of the posts here have illustrated that I am not alone in my struggles. It appears the only people who qualify for assistance and leniency are people who are irresponsible, like people who took out mortgages buy homes they can't afford or banks that took obscene risks and lost.

Despite ones best intentions, we are often faced with unexpected outcomes that we could have never predicted. Halfway through my doctorate I divorced and had to take a terminal Master's. As such, my earning capacity was significantly reduced, yet I was burdened with a large student loan debt. I continue to seek a higher paying position, but my field (mental health) pays poorly without that advanced degree. I am famously frugal (Clark would be proud!) and am not much of a consumer (I have everything I need), but I continue to struggle because of my student loan debt. I live strictly on cash and the IBR will allow me to put more money in savings to weather any potential catastrophes, such as being laid-off, a real possibility because I am a NC State employee and there is a serious deficit that is resulting in a workforce reduction. Thank you Clark, for keeping me informed. This will significantly reduce my payments until I am in a better financial situation.

Did you notice INCOME BASED? So people who can pay still will be liable. There are alot of people who can't pay.Dunning them and keeping their credit shot over this isn't going to change the fact that they can't pay. The money spent keeping up with and billing these people is even a waste.

I nave never recieved a student loan and have worked full time paying taxes for over 30 years. These changes arelogical.

My husband and I will gladly take any time of reduction, elimination, etc. - that the government has to give! My husband worked for 30 + years - started at the bottom and worked himself up - we married at 16 years old. We are 53 years old now and still in love. 5 and a half years ago, he was VP of sales of a $250 million company that had recruited him from a secure upper corporate job with another large company. After working with them a little over 2 years, they began cut-backs. As he had the least seniority reporting to the CEO, he was let go. With a stellar history in sales, with excellent communication skills, and an outstanding work history, he could find no work. Over-qualified again and again. Searched everywhere daily. Over three years without a job. Surgery for me, then he seriously broke his foot. We even spent our 401K to make house payments, pay medical bills, etc. We lost all of it and all of our savings. He became a licensed real estate agent - bottom fell out of economy. Started work on his MBA at GA State using student loans. In August of 2007, found a job making $34,000 a year. We pay $995 per month in a private medical insurance policy. We were forced to file bankruptcy and lost our home. He works full time and goes to school full time. Will be finished with his MBA in Dec. of this year. He has worked hard for his family and others all his life. Would I feel one tiny bit guilty at getting any type break on repayment of this student loan? Not one bit.

Okay Danielle, you say "None the less once we think about the implications and point out the possible negatives(deeper debt)we arrive right back at the positive aspect of this new plan. A more knowledgeable workforce that will breed creativity and innovation." I could be wrong but I didn't see anything in the IBR article that said the governement will only reimburse people who actually graduate. Therefore, we will be paying for people who drop out (trust me there will be many since they have nothing to loose) and those who decide to be professional students. I took a risk when I went back to school but that made me try harder and get out as fast as possible instead of racking up debt that I didn't have to pay back. I am still struggling to pay back my own loans and now I have to pay for everyone else. Come on, when does it end?

This does seem too good to be true, we will have to see the fine details. I've been able to finish my BS degree debt free by working part to full time and also going to school full time. Now at a medical school I've had to take out loans because I don't have time to work. I will have over $180,000 before interests is added. This program could save me a lot of money, but it just doesn't seem right to pass on my education expense to the government.

thanks for the info. I have a 13,000 student loan that i have been paying off for 5 years and the balance isnt going anywhere fast. My husband has been laid off on and off for the past 3yrs (construction) we have been struggling making those payments. I just used the calculator....and my payments should be more affordable.

Thank You

When I first heard about the IBR plan I was excited. However, at first it looked too good. So I looked at other people's responses to the program and created my own internal dialogue.

What I came up with makes business sense although a skeptic may find otherwise.None the less once we think about the implications and point out the possible negatives(deeper debt)we arrive right back at the positive aspect of this new plan. A more knowledgeable workforce that will breed creativity and innovation.

The benefits of IBR supports the notion that if I have nothing(due to current economic conditions) I cant loose anything. I have everything to gain. I will be more apt to go for that MBA knowing that if at the end of completion I am not able to capitalize on this investment I loose nothing.I will take risks. As history would proove, tremendous growth involves great risks.

Once again the government is rewarding irresponsibility. Whether it housing, credit cards or now education it doesn't pay to meet your obligations. I held off on having a big family because I couldn't afford it (partly due to student loans), but I guess I should get busy being irresponsible because I need 9 kids in order for this to help!

Thank you Clark for discussing this today on the radio. I will be contacting my lender and as a public school teacher making 55,000 and a household of 8 my payments will move from $563/mo to $10/month and will go away in another 8 years. I'm going to put the additional $553 in my Roth and retire a little bit more securely!