Consolidating student loans in 2016
has a great calculator that can help determine the amount.
The Pay As You Earn Repayment Plan (PAYE) is very similar to the IBR Plan.
It has nothing to do with your repayment plan, however, if you're smart, you'll combine IBR or PAYE with PSLF to get the maximum benefit.
You can learn more about Public Service Loan Forgiveness here: Top Ways To Get Student Loan Forgiveness, or you can enroll in our 15 minute program to show you how to apply.
With IBR, you loan repayment will never exceed the payment of the 10 year standard repayment plan, and your loan will also be forgiven at the end of the term.
The actual amount of your “discretionary income” is determined by a formula based on your family size and income tax returns.
The repayment plan still caps your payment at 10% of your discretionary income, and the loan will be forgiven after 20 years.
Since you have to submit your income every year, if your income rises high enough, your payment will adjust accordingly.
This isn't a secret, but this is one of the most popular ways to currently get loan forgiveness.
With PAYE, you will not pay more than 10% of your discretionary income, and your loan will also be forgiven after 20 years.
This program is also sometimes referred to as Obama Student Loan Forgiveness.
But this statistic is misleading, because a lot of borrowers think this means qualifying for some type of student loan forgiveness program. Actually, most borrowers qualify for student loan forgiveness through one of these “secret” ways.