August 2, 2021

Student Repayment Plans

Pay As You Earn

Loans that were made under the Department of Education’s Loan Programs are eligible for repayment under Pay As You Earn; A repayment plan that is designed to limit your required monthly payment to an amount that is affordable based on your income and family size.

Your monthly payment amount will be less than the amount you would be required to pay under a 10-year Standard Repayment Plan, and may be less than under other repayment plans. If you repay under the Pay As You Earn plan, any remaining balance will be forgiven after 20 years of qualifying repayment.

Public Service Loan Forgiveness

On-time, full monthly payments you make under certain repayment plans, while employed full-time in a public service job, will count toward the 120 monthly payments that are required to receive loan forgiveness through the Public Service Loan Forgiveness (PSLF) Program.

Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. In order to qualify for the Public Service Loan Forgiveness Program, the borrower must be employed full time (in any position) by a public service organization, or must be serving in a full-time AmeriCorps or Peace Corps position.

Loan Consolidation

Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments. Borrowers with consolidation loans may qualify for renewed deferment benefits.

Income Based Repayment

This repayment plan caps your required monthly payment at an amount intended to be affordable based on your income and family size. Monthly payments will spread over a term of up to 25 years.

Income Contingent Repayment

Under this plan, your monthly payments are made for a maximum of 25 years; based on your adjusted gross income, your family size, and the total amount of your loans; and the lesser of the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that changes with your annual income or 20 percent of your monthly discretionary income.

Disability Discharge

Some physical or mental impairment can qualify you for a total and permanent disability discharge on your federal student loans and/or TEACH Grant service obligation. Before your federal student loans or TEACH Grant service obligation can be discharged, you must provide information to show that you are totally and permanently disabled. Information provided will be evaluated to determine if you qualify for a total and permanent disability discharge.

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