The U.S. Consumer Financial Protection Bureau once again is reaching out to student loan borrowers with heavy debt loads to help lower their financial burden.
Leah is the subject of a CFPB video. She is a typical student loan borrower, saddled with $23,000 in debt and a year away from graduation. (The average student loan debt for graduates is $26,600.)
Leah learned about the Income Based Repayment option, which helped to significantly lower her monthly payments.
“It’s a lot less stressful now,” she says. “It feels amazing … My husband and I don’t feel like we’re living paycheck to paycheck. I wasn’t informed when I was taking out my student loans of the reality of after college. And now students have the CFPB website to know in advance and be informed of what to expect when they graduate. I took charge of my student loan debt. Now other students can take charge of theirs thanks to the CFPB.”
Federal law currently allows many students to do cap their student loan monthly payments to 10 percent of their income under the little-used Income-Based Repayment (IBR) plan.
See Leah’s video below. Here’s a link to the Paying for College tool.