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Ask Jean: Income-Based Repayment

iStock_000011584618XSmallI am a single 28 year old female and I have $180,000 in student loan debt. My debt is growing every day, regardless of my effort to pay. My annual income is $40,000. I have consulted with two separate bankruptcy attorneys who have not been able to offer any long term solutions. Do you have any solutions/advice? Thank you,

Yes, Melinda, talk to your lender about income-based repayment. Of course your debt is growing — your income simply isn’t large enough to keep up with it. But income-based repayment is a relatively new solution that takes your income into the equation when determining how much you have to repay each month. And if after 25 years of steady payment (10 if you work in a helping profession) any remaining debt is forgiving. I hope you qualify for this. If you don’t, please let me know and we’ll strategize some more.

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