Boston Student Loan Lawyer

Law Office of Adam S. Minsky

Say Hello to “Pay As You Earn!”

| Articles Pay-As-You-Earn

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President Obama’s new federal “Pay As You Earn” (PAYE) repayment program is now available. It is a great program: similar to Income-Based Repayment but with significantly lower monthly payments (based on 10% of discretionary income, instead of 15%) and a shorter repayment period (20 years, instead of 25) before loan forgiveness kicks in. It has strict eligibility requirements, however, that makes many borrowers ineligible:

  • PAYE only is available for Direct loans
  • You must have had no outstanding federal student loans as of October 1, 2007 AND
  • You must have taken out a new federal student loan on or after October 1, 2011

The U.S. Department of Education has released a new Repayment Plan Selection form making PAYE an available option: click here to see the new form.

I also recently did a “Q&A” with Kiplinger’s Personal Finance magazine about the new program: click here to read the article.

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About Adam S. Minsky, Esq.

Adam S. Minsky founded the first law office in Massachusetts devoted entirely to assisting student loan borrowers, and he is one of the only attorneys in the country practicing in this area of law. He provides counsel, legal assistance, and direct advocacy for borrowers on a variety of student loan-related matters. He regularly speaks to students, graduates, and advocates about the latest developments in higher education financing.