Are you one of those individuals who have completed their education but currently employed or drawing a very meager salary? If you have a very larger amount of student loan and unable to pay off, then there is a new program started called Student Loan Repayment Plan. Under this plan, if your monthly income is less than 150% that of the poverty level, then you easily qualify for this plan and would not have to pay for the loan amount. As per 2009, the level of poverty in United States for a single person is $16,245 and if your earning is less the amount mentioned above, then it would be helpful for you. It is to be noted that the plan is applicable to both subsidized as well as unsubsidized loans for students and is applicable for your federal loans only. After when twenty years pass by, it would be understood that you have cleared your loan amount.

The only thing that needs to be remembered is that you have loan debt more than what you are earning in a given specific year. For those of you who are in the government service and have qualified for the Student Loan Repayment Program, then the remaining loan amount of your stands cancelled at the end of 10 years. For this you must be working in the following government departments: military service, education, law enforcement etc. Some of the different kinds of federal loans on which this program is applicable are:

• Direct Stafford Loan (Subsidized & Unsubsidized)
• Direct Graduate Plus Loans
• Federal Consolidation Loans

For those of you who don’t qualify for this program for their student loan pay off, there is no need to worry. Following are some of the tips mentioned below which you can find useful in making your payments:

• Make your payment through automatic withdrawal payments for e.g. payroll deduction where you can get large incentives and gets a reduced interest rate

• Once you have got the loan, the lenders would provide you several kinds of offers and programs through which you can make the repayments easier and also provides some option to get the interest rate low. So, check your emails on a regular basis and if such a program comes, intimate your lender as soon as possible

• When you have got the loan, make a budget about the money to be paid on a monthly basis and do all the needed paperwork.

• If there is a session organized, make sure that you attend it because they would give your vital information about your student loan repayment.