Did You Know….That the U.S. Department of Education (ED) has released information on the new Pay as You Earn (PAYE) Direct Loan Repayment Plan?
ED announced on December 21, 2012 that information on the new PAYE repayment plan was available. This new PAYE plan is designed to assist borrowers with repayment when the borrower’s student loan debt is high when compared to his or her income. The use of this plan may assist borrowers in avoiding delinquency or default, and as a result may assist schools in maintaining a lower default rate. Borrowers and schools should be aware of the short- and long-term impact of the use of this plan. See the December 21, 2012 Electronic Announcement on IFAP for more information.