In response to President Obama's executive order, the Department of Education will soon introduce a new federal student loan repayment program - Revised Pay As You Earn aka REPAYE. This federal loan repayment option, REPAYE, is intended for those borrowers currently in or considering IBR, but not PAYE borrowers as PAYE is a better program.
Here are a few REPAYE details:
The good:...
1. Annual payments will be 10% of discretionary income (IBR is 15% of discretionary income).
2. No more than 50% of the actual annual negative amortization will accrue.
The bad:
1. A 25 year repayment period for graduate students/loans.
2. Spouse's income will be included regardless of tax filing status. This is mitigated if spouse has federal student loans.
3. No monthly payment cap. IBR & PAYE cap the monthly payment at no more than the 10-year standard monthly payment amount.
Again, REPAYE, is intended for those borrower's currently in or considering IBR. Below are some links for reference:
http://www.usnews.com/education/blo...ect-from-the-new-income-driven-repayment-plan
http://www.nytimes.com/2015/08/15/y...will-reduce-student-loan-repayments.html?_r=0
Here are a few REPAYE details:
The good:...
1. Annual payments will be 10% of discretionary income (IBR is 15% of discretionary income).
2. No more than 50% of the actual annual negative amortization will accrue.
The bad:
1. A 25 year repayment period for graduate students/loans.
2. Spouse's income will be included regardless of tax filing status. This is mitigated if spouse has federal student loans.
3. No monthly payment cap. IBR & PAYE cap the monthly payment at no more than the 10-year standard monthly payment amount.
Again, REPAYE, is intended for those borrower's currently in or considering IBR. Below are some links for reference:
http://www.usnews.com/education/blo...ect-from-the-new-income-driven-repayment-plan
http://www.nytimes.com/2015/08/15/y...will-reduce-student-loan-repayments.html?_r=0
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