There are a number of income based repayment plans that allow for affordable student loan payments and ultimately forgiveness of the student loan debt.
One program is the PAYE Program!
What do I Need to Know About the Paye Program?
The Pay as You Earn Program (PAYE) provides student loan borrowers with newer types of federal loans taken after October 1, 2007 are eligible for the Paye Program, also for those who have borrowed a direct loan or direct consolidation loan after October 1, 2011 you also need to demonstrate partial financial hardship.
Ten percent (10%) of discretionary income or 150% of poverty level weighed by the family size is the maximum payment you will have to make. This payment is adjusted annually based on changes in your income and family size. And, after 20 years, any remaining debt is forgiven!
Are There Going to be Any Changes in the PAYE Program?
Yes! President Obama has asked for an expansion of the Paye Program. Some of the proposals include:
- Opening the eligibility programs for Federal Student Loan holders who took loans prior to 2007.
- Debt forgiveness available on the ability to pay regardless of proof of financial hardship.
- Making any tax penalty on the remaining debt a tax exempt benefit or quasi-federal tuition assistance program.
What Should I do About my Student Loan Debt?
If you are struggling to pay your student loan debt, it’s time you contact student loan attorney Nancy Cavey who can provide you with an analysis of your personal loan debt and provide you with a road map for financial freedom including student loan forgiveness. Contact her today at 727-828-9955.