Income Driven Repayment Plan Pay As You Earn
![What Are These Programs Student Loan Repayment Plan Repayment Student Loan Repayment](https://i.pinimg.com/originals/c8/65/25/c86525c6905d504c952d13b9cb8e1fcb.png)
Income driven repayment plans can help lower your monthly student loan payment.
Income driven repayment plan pay as you earn. Idr plans include revised pay as you earn repaye pay as you earn paye income based repayment ibr and income contingent repayment icr plans. After 20 years of payments any remaining loan balance will be forgiven. Pay as you earn repayment paye is an income driven repayment plan that bases student loan payments on 10 percent of the borrower s discretionary income which is defined as the amount by which adjusted gross income exceeds 150 of the poverty line. Each one has slightly different rules about how much your monthly payments will be.
But as discussed qualifying for paye can be a hurdle for some borrowers. It lowers your monthly payments to just 10 of your discretionary income and offers loan forgiveness after 20 years no matter when you borrowed your loans. Under these plans your monthly payment is based on your income and family size. Paye is an income driven repayment idr plan for federal student loans.
The pay as you earn paye repayment plan is one of four income driven repayment idr plans for federal loans.