Available for Direct Loans Only
REPAYE became available in December 2015 and offers several benefits including: a potentially lower monthly payment, no disbursement date restrictions, loan forgiveness after 20 or 25 years, and interest subsidies to prevent ballooning loan balances.
This plan is available for Direct Loan borrowers only, and eligible loan types include: Direct Subsidized/Unsubsidized, Direct Grad PLUS, and Direct Consolidation loans. Direct Parent PLUS loans, defaulted loans, and consolidation loans that repaid a Parent PLUS loan cannot be repaid under the REPAYE plan.
Your monthly payments are based on your eligible federal student loan debt, income, and family size. The payment amount is 10% of the difference between your adjusted gross income (AGI)*, and 150% of the poverty line amount for your family size and state. The payment amount is valid for 12 months at a time and you are required to reapply each year by submitting a new Income-Driven Repayment Plan Request form that will provide us with your updated income and family size information. If your income and family size information is not received by your annual renewal date, you will be removed from the REPAYE plan and placed on an alternative repayment plan. Your new payment amount will be a fixed amount, determined by your total outstanding balance and a repayment term that is the lesser of either 10 years from the date you were placed on an alternative repayment plan or the date your loan(s) would have reached forgiveness under REPAYE.
Under REPAYE, your remaining balance will be forgiven after 20 or 25 years (you may qualify for forgiveness after 20 years if the loans being repaid under the REPAYE plan include only loans you received to pay for undergraduate study, whereas you may qualify for forgiveness after 25 years if the loans being repaid under the REPAYE plan include a loan you received to pay for graduate or professional study).
* If you are married, regardless of your tax filing status with your spouse, your spouse's income will be included in your Adjusted Gross Income (AGI). If your spouse has eligible student loans, his or her loan debt may also be considered when calculating your monthly payment on REPAYE. If you believe that your AGI, as reported on your most recently filed federal income tax return, does not reasonably reflect your current income and your spouse's current income (if applicable), you may provide alternative documentation of income and provide proof of your current income (as instructed in Section 5 of the Income-Driven Repayment Request form).