New “Pay As You Earn” Student Loan Repayment Plan to Launch December 21, 2012
New “Pay As You Earn” Student Loan Repayment Plan
Final regulations implementing the President’s “Pay As You Earn” repayment initiative have just been published. The regulations provide for reduced payments for some federal student loan borrowers and improve the federal student loan disability discharge process. Highlights include:
- Must not owe a balance on a federal loan as of October 1, 2007; and
- Must receive a disbursement of a federal loan after October 1, 2011.
Payments will be 10 percent of discretionary income with forgiveness after 20 years in repayment. Implementation of Pay As You Earn is set for December 21, 2012. For more information, contact Nicole Simmons, Director of Public Service Programs, at firstname.lastname@example.org.