Obama's 'Pay as You Earn' Student-Loan Plan Starting Date Is Set for

Posted By: Admin | Posted In: Trending News |
December 7, 2012

Starting on the 21st of this month eligible borrowers of federal student loans will able to enroll in President Obama’s “Pay as You Earn” program, the Department of Education is expected to officially announce on today. The new income based repayment plan (click here to review on the Chronicle)  effectively caps monthly a graduates loan payments at 10 percent of a borrower’s current discretionary income.  Also after 20 years of making these payments, the government will forgive the balance on the loans.  Currently the Education Department’s income-based repayment program caps monthly loan payments at 15 percent of discretionary income, with loan forgiveness after 25 years. The program will accept new enrollees who were new borrowers after October 1, 2007, and who also took out a loan on or after October 1, 2011.]]>