One of the newest income driven repayment plans is the Revised Pay As You Earn Plan. Direct loan student borrowers can cap their monthly payments at 10% of the discretionary income, regardless of how much they borrowed.
The Department of Education estimates that over 5 million borrowers will be able to reduce their payments to 10% of their income.
How Does This Impact Parent Plus Borrowers?
Unfortunately, Parent Plus borrowers are not eligible for the REPAY program. The best income driven option for Parent Plus borrowers is to:
- Consolidate, and
- Repay at the cap 20% rate under the old income contingent repayment plan.
If the Parent borrower works for a public service employer, they may be eligible for the public service forgiveness program if there is any balance left at the end of the Parent Plus repayment program.
What Should I Do To Learn More About The Repay Program?
You may have combinations of student loans. It can be difficult to sort out which loans are eligible for which income driven repayment plan or forgiveness plans can be complicated.
You owe it to yourself to contact Student Loan Resolution Center at 727-828-9955. Call today for a complimentary consultation.