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It was several years ago, under the Obama Administration, when the Department of Education began offering a more favorable version of the income-based federal student loan repayment program.
The Pay As You Earn (PAYE) program allows eligible borrowers to cap monthly payments to 10% of discretionary income, and have their loans forgiven after 20 years.
This student loan repayment program can benefit borrowers if you need to make lower monthly payments.
PAYE helps keep your monthly student loan payments affordable.
Requirements for the PAYE Program are strict, but if you qualify it’s a good program to make student loans manageable. Borrowers that didn’t start college until after 2007, will likely qualify for the PAYE Program.
To qualify for the PAYE repayment program, you must meet the following criteria as a borrower:
Your loan must be one of the following types of federal student loans to qualify for PAYE:
Borrowers who enrolled earlier than 2007 may still be eligible through the REPAYE (Revised Pay As You Earn) Program.
The REPAYE plan was created to address federal student loan debt created prior to 2007. In Dec. 2015, the Department of Education created REPAYE as an extension of the PAYE program. REPAYE removes some of the restrictions imposed by Income-driven repayment plans.
With the REPAYE Plan:
American families are carrying about $1.6 trillion in student loan debt. The PAYE and REPAYE Repayment Plans are just some of the repayment alternatives offered to borrowers. While the repayment plans aren’t ideal, they do offer families a solution to out-of-control student loan payments.
To learn more about the “Pay As You Earn” program visit:
Student loan refinancing can be an option to lower monthly student loan payments. Start your search here:
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