What is REPAYE Student Loan Repayment?
After making the Pay As You Earn (PAYE) student loan repayment system available to borrowers in 2012, President Obama expanded the program by enacting the Revised Pay As You Earn (REPAYE) repayment plan in December of 2015.
While REPAYE has many of the same features as PAYE, the updated plan has several key improvements. Not the least of which is that it’s available to any borrower with qualifying loans – which opens the plan up to an estimated 5 million additional borrowers. This is a huge step up from PAYE, which is essentially only available to the class of 2012 and later.
How it Works:
Monthly payments under REPAYE work basically the same as Pay As You Earn and Income Based Repayment. Your monthly payments are 10% of your discretionary income, which is calculated using the difference between your AGI and 150% of the poverty line in your area. There are also a few key improvements and differences though.