President Obama has announced an extension of the Pay As You Earn (PAYE) repayment option to approximately 5 million additional borrowers, who first took out loans between 2007 and 2011, and whose dates of borrowing exclude them currently. The PAYE option caps monthly payments at 10 percent of discretionary income, setting monthly payments on a sliding scale based upon income. Any remaining balance is forgiven after 20 years of payments, or 10 years for those in certain public service jobs. The PAYE plan will be available to these additional borrowers by December 2015.
For additional information please review the Presidential Memorandum – Federal Student Loan Repayments and the Presidential Fact Sheet: Making Student Loans More Affordable