Take Action for Real Loan Forgiveness!
In addition to lowering monthly student loan payments, the new Income-Based Repayment (IBR) program forgives any remaining debt -including interest - after 25 years. Most borrowers will pay off their debt before then, but under current law, if there's anything left to forgive after 25 years, the amount forgiven would be taxed as income to the borrower.
A bipartisan bill in the U.S. House of Representatives, H.R.2492, would prevent the taxation of debt forgiven through IBR. Loan forgiveness is supposed to wipe the slate clean for responsible borrowers, not create a new financial obligation. Current law exempts some kinds of loan forgiveness from taxation, including Public Service Loan Forgiveness, but not IBR.
Please take a moment to write to your representative and urge them to support H.R. 2492 and ensure there's really a light at the end of the tunnel for responsible borrowers.
IBR Webinars Next Week
Equal Justice Works, one of IBRinfo's partner organizations, is co-hosting an interactive webinar about IBR. You can call in, submit questions, and learn more about IBR before it becomes available on July 1. Questions will be answered by Edie Irons, communications director for the Project on Student Debt (home of IBRinfo.org); and Heather Jarvis, an attorney with Equal Justice Works and a leading national expert on Public Service Loan Forgiveness.
To sign up for either webinar, click the appropriate link below. Sign up soon, before they fill up!
- Monday, June 22, 4 - 5 p.m. EDT (3 p.m. CDT, 1 p.m. PDT)
- Thursday, June 25, 4 - 5 p.m. EDT (3 p.m. CDT, 1 p.m. PDT)
IBR Resources on the Department of Education's Web Site
The U.S. Department of Education has posted a fact sheet about IBR to its web site, and also created its own IBR calculator. We will add links on IBRinfo.org as more official information becomes available. We know that lenders and the Department are working hard to prepare for July 1, and IBRinfo.org will continue to provide up-to-date information about new developments and links to new resources to help make IBR as accessible as possible.
(This message was sent to the IBRinfo mailing list on June 19, 2009.)
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