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New "Pay as You Earn" repayment plan goes into effect

Posted date: 11/14/12

What this means for those in repayment: if eligible, you may be able to lower your monthly payments, reduce the period of time you will be in repayment (as compared to Income Based Repayment) as well as other benefits.

The caveat: unlike Income Based Repayment, only certain borrowers will be eligible to participate in the program.

To be eligible: you must have not borrowed any federal loans prior to October 1, 2007 AND must have had a federal loan disbursement AFTER October 1, 2011.

Students that might be eligible should review the following information from the Department of Education: http://studentaid.ed.gov/repay-loans/understand/plans/pay-as-you-earn