New Program To Help Pay Off Student Loans, Called REPAYE

Many people are drowning in debt from student loans. Of course, the whole purpose of a student loan is to help a person get their education so that they don’t have to drown in debt any more. However, borrowing from the government means you have to pay all of it back plus interest. This can add up to a lot! So much so that those who end up taking out these student loans end up having to hold down more than one job to make ends meet and pay off their student loans, eating Ramen noodles because they are cheap and fill you up, and going without things they want but don’t need currently. This is no life to live but many do it because they have to. Many do it just to get that ever so important education to make a better living for themselves and, one day, for their family too.

However, now there is a program from the federal government called REPAYE. REPAYE is a lot like an older program the government called PAYE, but it has some differences to it as well. According to the official blog of the United States Department of Education, REPAYE will go by 10 percent of your income. Not only this but unlike PAYE, REPAYE is not just for those who have just started their student loans but for everyone who has a student loan out.

According to the blog, the similarities of the two are only a couple and they both go by 10 percent of your income and forgiveness toward your student loan after a 20-year repayment period. However, there are many differences and they include:

• The timing of the loan. Although PAYE means you have to have just started your student loan, REPAYE doesn’t require to to have just started it to be eligible for REPAYE. There are no time constraints with REPAYE.
• No proof of low income to be eligible. Although PAYE requires you to show proof of low income, REPAYE doesn’t require this from anyone wishing to take part in this program.
• Income cap. PAYE comes with an income cap of 10 percent. However, REPAYE does not. They allow you to pay 10 percent of your income for the life of the loan you have out.
• And much more can be found here at the official blog of the United States Department of Education.

However, according to the Huffington Post, you either need to have a direct loan through the federal government or you need to have either subsidized or unsubsidized Stafford loans. Now, before considering any type of repayment plan, check out this repayment estimator which will help you determine what type of repayment plan works best for you.

According to the Huffington Post, REPAYE is a great program for those who don’t qualify yet for the PAYE program.

There is also something called Public Service Loan Forgiveness which will allow loan forgiveness of up to ten years instead of all the way up to 20 to 25 years. This is what is good about a PSLF and why many who think they qualify should check something like this out to help pay their student loans back.

If you think REPAYE sounds like a great program for you, why not give it a try? And trying out the PSLF program can help you get out of student loan debt even more which will make life better for you in the long run. You should also check out the Federal Student Aid Section for as much help as you can get on your student loans.

[Photo by Mario Tama/Getty Images]