Dec. 30, 2014
For many borrowers, income-based repayment works like long-term forbearance, or better if their debt is forgiven. Borrowers might have their payments suspended, or lowered to the point that they will never fully repay the loan before the outstanding balance is forgiven. In some cases the payments may not even cover the interest that accrues each month. The Obama administration estimated in 2012 that the average amount forgiven in income-based repayment plans will be $41,000 per borrower.