The first one is the change from 150% to 225% of the federal poverty guideline factor when calculating discretionary income. Discretionary income is a key variable, since income-driven repayment plans use a percentage of discretionary income (currently 10% to 20% depending on the plan) to calc...
PlanPayment amountRepayment termEligible loansBest for Pay As You Earn (PAYE)10% of discretionary income20 yearsDirect Loans; FFEL loans; Perkins Loans if consolidatedIf your income is not projected to increase Income-Based Repayment (IBR)10% or 15% of discretionary income, depending on loan di...
IBR: The Safest Repayment Plan The Income-Based Repayment (IBR) plan is the safest of all federal income-driven repayment plans. This safety applies to both the original IBR and the more generous IBR for New Borrowers. Two key protections are in place for IBR: Statutory Protection: IBR is ...
an injunction was issued by the federal courts that blocked the implementation of parts of the SAVE plan, one of the IDR plans. Students can still apply for this plan, but their plan will be placed in forbearance until a resolution is reached. For updates about the plan, please visit...
What is TEPSLF vs. PSLF? While PSLF requires enrollment in specific income-driven repayment plans, Temporary Expanded Public Service Loan Forgiveness (TEPSLF) expands the list of qualifying repayment plans to the Graduated Repayment Plan, the Extended Repayment Plan, the Consolidation Standard Repayment...
Under PAYE, or Pay As You Earn, and IBR, or Income-Based Repayment, the government pays any interest that your calculated monthly payment doesn't cover for up to three consecutive years from the date you enter the repayment plan. However, under these two plans, you are...
There are four available IDR plans and the terms vary, but each is designed to make repayment more manageable for borrowers with lower incomes. The IDR plans are the Pay As You Earn (PAYE) repayment plan, the Income-Based Repayment (IBR) plan, the Income-Contingent Repayment (ICR) plan, ...
The latest release will always be on the top, and you can expand information about any release by clicking on it. Information is grouped by features that were updated, and you can find more information by clicking on the feature that interests you. Moreover, within some features you can ...
The new consolidated loan is then eligible for Public Service Loan Forgiveness (PSLF).6 Bear in mind that your student loan servicer handles the repayment of your federal student loans, so you'll have to work with your servicer to enroll in a repayment plan or change your current one.7...
Note that when you are applying for a federal income-based student loan repayment plan, your discretionary income is calculated a little bit differently. Under SAVE, IBR, PAYE plans, your required monthly payment is generally a percentage of your discretionary income and it is tallied as...