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.

1. Mullooly Asset Management Podcast
June 5, 2013
Mullooly Asset Management June 2013

2. Income Based
Loan Repayment Program
Department of Education offers program
Enacted as part of the College Cost reduction and Access
Act of 2007
Gives students option of monthly payment tied to their
income
Only 2.3 million of 38 million with student loan debt have
applied
Mullooly Asset Management June 2013

3. Under the Program
Borrower's monthly payments capped at a percentage
of their discretionary income
Borrower's average monthly payments NOT based on
principal borrowed or interest rate
Makes interest rates irrelevant
Mullooly Asset Management June 2013

4. The Old IBR (under Bush)
25 year repayment period
Caps borrower’s monthly payments at 15% of
discretionary income
Mullooly Asset Management June 2013

5. The New IBR
Part of Obama's 2010 Health Care and Education
Reconciliation Act
Changed repayment period from 25 to 20 years
Caps borrower’s monthly payments at 10% of
discretionary income
Mullooly Asset Management June 2013

6. Important to Remember
Both old and new programs allow discharge of
student loan balance after repayment period has
ended
Does NOT matter how much is left on the loan
Mullooly Asset Management June 2013

7. Conditions
If your monthly payment (under a standard
repayment plan) is MORE than what you would pay
under IBR…you are eligible to enroll
Mullooly Asset Management June 2013
Qualify for IBR Do NOT Qualify
for IBR
• Stafford loans
• GRAD plus loans
• Certain consolidated
loans
• Perkins loans
• Private student loans

8. None of the securities mentioned in this (or any)
podcast or video represent past specific
recommendations of Mullooly Asset Management.
This video is NOT a recommendation to buy or sell any
of the securities mentioned here.
If you’re relying on a podcast for investment advice, you
are likely making a huge mistake.
We strongly urge our listeners to consult with their
investment advisor before they make a decision to buy
or sell any investment.
Mullooly Asset Management June 2013

9. Mullooly Asset Management, LLC
support (at) mullooly (dot) net
732-223-9000
www.mullooly.net
Mullooly Asset Management June 2013

10. Mullooly Asset Management, LLC
support (at) mullooly (dot) net
732-223-9000
www.mullooly.net
Mullooly Asset Management June 2013