If federal student loan payments are high compared to a borrower’s income, the borrower may qualify to repay his or her loans under an income-driven repayment plan. An income-driven repayment plan sets the borrowers monthly student loan payment at an affordable amount based on the borrower’s income and family size. The Unites States Department of Education offers four income-driven repayment […]

“Income-Based Repayment Plan” (IBR) is an income-driven federal student loan repayment plan which sets the borrower’s monthly student loan payment at an affordable amount based on the borrower’s income and family size. What Federal Student Loans are Eligible for IBR? Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans made to graduate or professional students Direct Consolidation Loans that did […]

Income-Contingent Repayment Plan (ICR) is an income-driven federal student loan repayment plan which sets the borrower’s monthly student loan payment at an affordable amount based on the borrower’s income and family size. What Federal Student Loans are Eligible for ICR? Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans made to graduate or professional students Direct PLUS Loans made to […]

Understanding the accrual of interest is an important component of understanding student loans and college debt.  Like a home mortgage, borrowed money paid back over long periods of time can become exponentially more expensive depending on the rate of interest charged and how the interest is added to the principal of the money borrowed. What is Interest? Interest is the […]

“Pay as You Earn” -based repayment plan (PAYE) is an income-driven federal student loan repayment plan which sets the borrower’s monthly student loan payment at an affordable amount based on the borrower’s income and family size. What Federal Student Loans Are Eligible For PAYE? Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans made to graduate or professional students Direct […]

The “Revised Pay as You Earn” -based repayment plan (REPAYE) is an income-driven federal student loan repayment plan (revised as of December 2015 from the initial Pay as You Earn PAYE Plan) that sets the borrower’s monthly student loan payment at an affordable amount based on the borrower’s income and family size. REPAYE is virtually the same as the initial […]