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Showing posts from January, 2016

REPAYE check it out if you owe money for student loans

Today the Department of Education made the newest income-driven student loan repayment plan, the Revised Pay As You Earn (“REPAYE”) plan, available for borrowers to request through its  online income-driven repayment plan application  (a paper application is also available  here ).  Now all Direct Loan student borrowers (though not Parent Plus borrowers) will be able to cap their monthly payments at 10% of their discretionary income, regardless of when they borrowed.  This is great news for the Direct loan borrowers who are ineligible for the 10% payment rate available to only recent borrowers under the Pay As You Earn (“PAYE”) and Income-Based Repayment (“IBR”) plans.  The Department of Education estimates this will allow roughly 5 million more borrowers to reduce their payments to 10% of their income. The expansion of eligibility for the 10% payment rate is a welcome change that will help more borrowers struggling with their student loan debt.  However, it also adds further comple