GEORGIA — Student loan repayment plans are once again the topic of conversation as there are now two additional payment plans for borrowers.
Recently, the U.S. Department of Education announced its reopening of the pay as you earn payment plan and income contingent repayment plan.
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The two options are PAYE (Pay as You Earn) and ICR (Income-Contingent Repayment); PAYE is a repayment plan with monthly payments that are generally equal to 10% of your discretionary income, divided by 12, but never more than the 10-year Standard Repayment amount.
ICR caps your monthly student loan payment at the lesser of 20% of your discretionary income or what your payment would be on a fixed 12-year payment plan, after you adjust it for income.
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The Department of Education has been trying to replace the two plans with one it says is more feasible for borrowers known as the SAVE Plan.
However, the plan is embroiled in litigation and has been since July.
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