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But many borrow more than they can afford to pay back — and discover, too late, that the flexibility of income-based repayment is available only to student borrowers.
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The deal, which comes with no early repayment charges, is available on a repayment basis only, and up to a maximum loan to value ratio of 65 per cent.
Even though the current version of income-based repayment became available on July 1 , 2009 the repayment plan is available to all borrowers, even those who graduated before 2009.
The improved income-based repayment plan is available only to federal student loan borrowers who will have a new loan in 2012 or a subsequent year.
While the interest rate cut applies to new loans, the new repayment option is available to borrowers who took out federal loans or who used a federal consolidation loan to combine their higher-education debts.
For private loans, students must contact each provider to investigate if any special repayment plan is available.
An Income-Contingent Repayment Plan is available for Direct Loans only.
An Income-Sensitive Repayment Plan is available for FFEL Loans only.
Income-based repayment is currently available only for federal loans.
Income-based repayment is only available for federal loans such as Stafford loans and Direct loans.
The company has cash and deposits of £473m, although S&P estimates that only about £330m of this is available for debt repayment, and a £100m UBS note.
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