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New Repayment Option Effective 12/21/12

"Pay As You Earn" Loan Repayment Plan

12-10-2012

Have you borrowed Federal Direct Student Loans?  If so, you may consider repaying your student loans under the new "Pay as You Earn" plan. 

This new Income Based Repayment Plan caps monthly loan payments to 10% of a borrower's discretionary income.  After making 20 years of payments, any unpaid loan balance may be forgiven.

Enrollees must be new borrowers after October 1, 2007 and have loans disbursed on or after October 1, 2011.  To find out if the Pay as You Earn repayment plan is right for you, use the calculator on the Federal Student Aid website.