ST. LOUIS, MO--(Marketwire - Aug 23, 2012) - As a federal loan servicer, the Higher Education Loan Authority of the state of Missouri (MOHELA) is dedicated to informing borrowers it services about repayment options available to them. The federal government recently made changes to the Income-Based Repayment (IBR) plan for Federal student loans, lowering the cap of borrower monthly payments from 15 to 10 percent of the borrower's discretionary income starting in 2014.
Borrowers may struggle financially as students graduate with average debt of about $26,300. While higher education still proves to be a valuable investment, it may be challenging for families repaying loans to manage standard payments. Numerous alternative repayment plans are available for borrowers to determine which meets their unique needs to manage student debt.
The Department of Education is also taking ongoing steps to simplify the income-verification process on the IBR application. The IBR application previously required borrowers to provide a signed copy of their income tax return. The Department of Education and IRS have been directed by the president to streamline the online IBR application process that allows federally held student loans to import IRS income data directly into the application. The streamlined process is expected to be completed by September 30, 2012.
"MOHELA works closely with student loan borrowers we service to help them understand the repayment plans available and help them through applications such as the IBR application," said Raymond H. Bayer, Jr., MOHELA's Executive Director. "The Department of Education has made borrower-centric changes to make monthly payments lower for borrowers and make it simpler to apply for IBR."
Borrowers serviced by MOHELA interested in learning about the repayment options available to them should call 888.866.4352 or visit https://www.mohela.com/DL/common/repaymentoptions.aspx.
MOHELA (www.mohela.com) is one of the largest student loan companies in America and is dedicated to easing the burden of financing higher education in Missouri while providing exceptional student loan services. As a leading student loan servicer managing more than $18 billion in assets, MOHELA brings more than 30 years of experience assisting students, families and schools with servicing needs of their student loans. In 2011, MOHELA became the first servicer in the not-for-profit sector to receive a federal contract with the Department of Education to service loans as part of the Federal Loan Program.