I can't afford my monthly student loan payments. Are there any new repayment options for federal student loan borrowers?


Effective Dec. 17, 2015, borrowers with Direct federal student loan will be eligible for the Pay As You Earn or PAYE program under the new REPAYE option, no matter when their loans were taken out.

This means that if you cannot afford your regular student loan payments, you may be eligible to pay as little as 10% of your discretionary income towards your loans, with any unpaid balance forgiven after 20 years. Some borrowers may have a payment as low as 0 per month, depending upon their income. 

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization