I noticed that the studentaid.ed.gov site posted this frontpage announcement on Dec. 7, 2011 :

Announcements
New — Student Loan Repayment Information for Entrepreneurs.

Clicking on the frontpage link takes you to an article titled: Student Loan Repayment Information for Entrepreneurs.

The last paragraph of this article begins with the sentence: “Coupled with IBR, Public Service Loan Forgiveness (PSLF) can help borrowers effectively manage repayment of their Federal student loans while starting a non-profit organization.”

Can you help me understand how this new coupling of (IBR) and (PSLF) work together to help borrowers ...“while starting a nonprofit”.

Thanks!

Full-time paid work for a 501(c)(3) is qualifying employment for Public Service Loan Forgiveness.  Income-based repayment provides access to reduced monthly payments based on a borrower’s Adjusted Gross Income and family size.  IBR alone can help make federal student loan monthly payments manageable during times of low income (like while your getting a new nonprofit off the ground), and then once a borrower is working full time for pay in the nonprofit, they can pay under IBR and be working towards earning Public Service Loan Forgiveness.  Make sense?