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If youve graduated and started working, and yet you still feel overwhelmed by your student loan payments, there are ways to lessen the load. Federal student loan borrowers may be eligible for a government repayment plan that caps monthly payment amounts based on income.
Pay As You Earn, or PAYE, is one of the Department of Educations income-driven repayment programs. It was passed into law by President Obama in 2012, and limits monthly loan payments to 10% of a borrowers discretionary income. It doesnt replace the Income-Based Repayment, or IBR, program which limits monthly payments to 15% of a borrowers discretionary income because you mus…
Read the full article at: https://www.nerdwallet.com/blog/advisorvoices/pay-as-you-earn-plan-can-help-graduates-overwhelmed-by-debt/