Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.

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Joined: Wed Jan 26, 2011 1:44 pm


Postby tjgagner » Wed Jan 26, 2011 1:55 pm

I came past this forum looking for changes that occur to IBR payments after you get married, and then felt compelled to join the conversation. Try not to take too much offense, but the posts in this law school forum reflect very little (if any true) research. Can you rack up 150K in debt and then use IBR to pay it. NO! The only loans eligible for consolidation are DIRECT loans , which include Stafford and some PERKINS. There are also some grad school loans in this payment plan but the common thread is the limitation is loan amount. Typically the most eligibility afforded to these federal loans is about $5500/year (if you qualify). All those private, PLUS (<-----!), and gradPLUS loans are not eligible. Therefore, the limitation of repayment as a percentage of your net income only applies against these smalls loans, and in most cases if you make above $40,000 you will no longer be eligible for the program. In summary, this has almost zero affect on the repayment of loans for law school students.


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Postby sidhesadie » Wed Jan 26, 2011 3:07 pm

According to, you're incorrect regarding GradPlus loans:

Income-Based Repayment (IBR)
IBR is designed to help borrowers whose income makes a Standard (10-year) loan payment hard to afford. Anyone with eligible loans can apply to see if his or her payments will be more affordable under IBR.
IBR can help you if:
You have federal student loans in either the Direct or Guaranteed (FFEL) Loan program.
Your loans include Stafford, Grad Plus, and federal Consolidation loans that do not include Parent PLUS loans. Perkins loans are eligible if you consolidate them into a federal Guaranteed (FFEL) or Direct loan.
You borrowed before or after IBR was created, for either graduate or undergraduate study.
Your debt-to-income ratio qualifies you for reduced payments. Use our calculator to check if you might meet this test.

however if you have Parent Plus loans or if your consolidation includes ParentPlus loans, they are not eligible and private (non-government backed) loans are not eligible.

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Postby mr_toad » Wed Jan 26, 2011 3:12 pm

And end thread. Well done, #2.

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