As of July 1, 2009, graduates may choose to repay their student loans based upon their ability to pay.  A new federal program called "Income Based Prepayment" or "IBR", calculates payments using a sliding scale that reflects family income.  Depending upon the circumstances, monthly payments might be reduced by 30%, and in some cases, to zero.

Generally speaking, anyone with a federal student loan, Strafford, Grad Plus or Consolidation loan made under either the direct loan or FFEL program is eligible.  Reassessments are made annually.

Employees of government agencies or not-for-profit organizations may be eligible to have any outstanding balances (including interest) written off after 10 years.  All other borrowers may have their balance written off after 25 years.

For more details and a calculator to estimate your monthly payment, visit the Student Aid website.  Watch an amusing video called "Ditch Your Debt Gremlin" which further explains the new program.

For more money coaching tips and ideas on student loan repayments, make an appointment with Diane Nissen Friedman by phone (201)447-1137 or email today.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the federal government in 1933 to foster confidence in the banking sector.  The agency's funding is from the private sector.  Member banks and thrift institutions pay premiums based upon earnings.

In October of 2008, Congress increased the amount covered per depositor, per bank from $100,000 to $250,000.  This increase will remain in effect until December 31, 2013.  Savings and checking accounts, money market deposit accounts, and certificates of deposit are all covered.

Before you open an account at a financial institution, verify it is an FDIC-insured institution.  Not all financial institutions are FDIC-insured.

Visit FDIC more information.