Consolidating unsubsidized stafford loans
With PAYE, you will not pay more than 10% of your discretionary income, and your loan will also be forgiven after 20 years.
If you are a borrower with loans July 1, 2014, your loan will not exceed 10% of your discretionary income, and the loan will be forgiven after just 20 years.Under this plan, your payments will be the lesser of the following: With the ICR plan, your loans will be forgiven at the end of 25 years.It's important to note that with this plan, your payments could end up being higher than the standard 10 year repayment plan.Check out the Public Service Loan Forgiveness Training.It's important to note that while these “secret” student loan forgiveness options could be helpful to some borrowers, for others they may result in tax consequences (see taxes and student loan forgiveness).The Income Contingent Repayment Plan (ICR) is a little different than IBR or PAYE.
There are no initial income requirements for ICR, and any eligible buyer may make payments under this plan.
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.
Unlike PAYE, which was available for loans taken out after 2007, Re PAYE is open to all Direct Loan Borrowers, regardless of when the loan was taken out.
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.