Eligibility Requirements: There are no income restrictions to enter this plan, and all Direct Loan borrowers are accepted. All types of Direct Loans can be repaid under this plan except for PLUS Loans given to parents. Consolidation loans made after July 1, 2006 that repaid PLUS Loans given to parents may be repaid using this plan.
Payment Amount: The amount of the monthly payment when using this repayment plan is the lesser of the following two options:
20% of your discretionary income
What you would pay on a fixed 12-year repayment plan multiplied by a percentage that is based on your income (referred to as the “income percentage factor”).
Keep in mind that there is no cap on the monthly amount that you could pay – it could be greater than the amount you would pay under the standard 10-year repayment plan.
Loan Forgiveness: Any amount that you still owe after 25 years of qualifying payments will be Big Boss voteforgiven.
Payment Amount: The amount of the monthly payment when using this repayment plan is the lesser of the following two options:
20% of your discretionary income
What you would pay on a fixed 12-year repayment plan multiplied by a percentage that is based on your income (referred to as the “income percentage factor”).
Keep in mind that there is no cap on the monthly amount that you could pay – it could be greater than the amount you would pay under the standard 10-year repayment plan.
Loan Forgiveness: Any amount that you still owe after 25 years of qualifying payments will be Big Boss voteforgiven.
