Getting Out of Student Loan Debt

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Getting out of student loan debt is a goal most people spend their twenties accomplishing. There is a government program that could lighten the financial burden students loans are putting on your cash flow. You should know about this program.

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Getting Out of Student Loan Debt

  1. 1. Mullooly Asset Management PodcastJune 5, 2013Mullooly Asset Management June 2013
  2. 2. Income BasedLoan Repayment ProgramDepartment of Education offers programEnacted as part of the College Cost reduction and AccessAct of 2007Gives students option of monthly payment tied to theirincomeOnly 2.3 million of 38 million with student loan debt haveappliedMullooly Asset Management June 2013
  3. 3. Under the ProgramBorrowers monthly payments capped at a percentageof their discretionary incomeBorrowers average monthly payments NOT based onprincipal borrowed or interest rateMakes interest rates irrelevantMullooly Asset Management June 2013
  4. 4. The Old IBR (under Bush)25 year repayment periodCaps borrower’s monthly payments at 15% ofdiscretionary incomeMullooly Asset Management June 2013
  5. 5. The New IBRPart of Obamas 2010 Health Care and EducationReconciliation ActChanged repayment period from 25 to 20 yearsCaps borrower’s monthly payments at 10% ofdiscretionary incomeMullooly Asset Management June 2013
  6. 6. Important to RememberBoth old and new programs allow discharge ofstudent loan balance after repayment period hasendedDoes NOT matter how much is left on the loanMullooly Asset Management June 2013
  7. 7. ConditionsIf your monthly payment (under a standardrepayment plan) is MORE than what you would payunder IBR…you are eligible to enrollMullooly Asset Management June 2013Qualify for IBR Do NOT Qualifyfor IBR• Stafford loans• GRAD plus loans• Certain consolidatedloans• Perkins loans• Private student loans
  8. 8. None of the securities mentioned in this (or any)podcast or video represent past specificrecommendations of Mullooly Asset Management.This video is NOT a recommendation to buy or sell anyof the securities mentioned here.If you’re relying on a podcast for investment advice, youare likely making a huge mistake.We strongly urge our listeners to consult with theirinvestment advisor before they make a decision to buyor sell any investment.Mullooly Asset Management June 2013
  9. 9. Mullooly Asset Management, LLCsupport (at) mullooly (dot) net732-223-9000www.mullooly.netMullooly Asset Management June 2013
  10. 10. Mullooly Asset Management, LLCsupport (at) mullooly (dot) net732-223-9000www.mullooly.netMullooly Asset Management June 2013

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