This page is created to explain how the all of the federal student loan repayment plan. And help you on when it may be smart to pick one Student Loan Repayment plan over another. Each has their advantages. We believe it’s smart to know and study all method to decide which decision you believe will help you the most in the brief and long-term. The six repayment plans are the Pay As You Earn, Revised Pay As You Earn, Income Based, Standard Student Loan Repayment. Lastly the Graduated Student Loan Repayment plan. Four of the methods are income driven and are estimated based upon your discretionary income.
The REPAYE plan is the latest of all the income-driven student loan repayment programs. It was formed in December of 2015 as an addition of the previously current Pay As You Earn plan(PAYE). The REPAYE plan was designed to exclude some limitations that were in the PAYE plan, as well as adding extra advantages. The REPAYE plan gives loan forgiveness after 20 years of qualifying payments for undergraduate loans, and 25 years for graduate loans and caps your monthly payment at 10% of your discretionary income.
Benefits of REPAYE
Qualifying Loan Types
Warning: There is glaring contrary to the REPAYE plan, which regards to married couples. Earlier income-driven plans would view just the borrower’s income if married but filing taxes individually from their spouse. Your spouse’s salary will be counted when measuring your REPAYE payment. This can mean a remarkably higher amount than other plans which do not have this clause. For more specific information on the Revised Pay As You Earn plan, click this link.
Private student loan consolidation is available through various banks we work with to combine all your student loans into one new loan. Private student loan consolidation requires a good credit score and will often have better rates than the federal student loan.