JEN KILPS in "Gambling on an Education" (July-August 1997) characterizes income-contingent student loans as being theoretically sound but inaccessible to most students. After graduating from seminary with a large amount due in Stafford (student guaranteed) loans, I simply called and enrolled in the William D. Ford Federal Direct Loan Progam’s Income Contingent Plan. The number of years I had to pay off my loans was extended to 25 years and monthly payments dropped steeply.
After 25 years the unpaid balance of your student loan is forgiven (the amount forgiven will count toward your income that year and you’ll owe income taxes on it). For more information about this plan, call 1-800-848-0979.