Income Contingent Repayment Vs Revised Pay As You Earn

Revised pay as you earn introduced in 2015 is a type of income driven repayment plan available to select federal student loan borrowers.

Income contingent repayment vs revised pay as you earn. Let s take a closer look at these two popular plans to discover which one may work best for you. Income driven repayment or idr is an umbrella term for four federal student loan repayment options. Pay as you earn repayment plan paye payment limited to 10 of discretionary income forgiveness after 20 years. I just finished by masters degree and currently job searching.

As you re choosing between income driven repayment plans you may find yourself torn between pay as you earn paye versus income based repayment ibr. I have an insane amount of student loans to deal with for the rest of my life. E made monthly payments under the income contingent repayment plan described in paragraph b of this section the revised pay as you earn repayment plan described in paragraph c of this section or the income based repayment plan described in 685 221 including a calculated monthly payment amount of 0 00. Here s a table for you visual learners.

20 of your discretionary income or. Income contingent repayment plan icr payment limited to the lesser of 20 of discretionary income or payment under a 12 year fixed repayment plan forgiveness after 25 years. Probably 50k at best down the road. Revised pay as you earn repayment plan repaye like paye with repaye your maximum monthly payments.

The answer has been a series of income driven repayment plans including the pay as you earn paye program and its most recent offspring the revised pay as you earn program or repaye. I m likely looking at gross income of 23 38k for the near future. Revised pay as you earn or repaye is an income driven repayment plan that caps federal student loan payments at 10 of your discretionary income and forgives your remaining balance after 20 or. With repaye your monthly payment is typically 10 percent.

Income contingent repayment plan icr under the icr plan your payment is the lesser of. Federal reserve some 20 of consumers who have outstanding student loans are struggling to pay off. All of the other income driven repayment plans the pay as you earn paye income based repayment ibr and income contingent repayment icr plans follow the general rule that looks at how you file your federal income tax return with your spouse in deciding how to calculate your payment. Pay as you earn vs income based repayment vs income contingent repayment.