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In other words, one in five borrowers is unable to escape debt without losing their car.
Other States prohibit loans that exceed a certain percentage of the borrower's gross monthly income (generally between 20 and 35 percent) as a proxy for ability to repay.
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Interest does accrue on the income-related payment plans if your payments are very low relative to your loan balance, despite the limitations on interest accrual that are baked into these plans; so that is a downside of staying on them.
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