What does Repaye mean for student loans?

Revised Pay As You Earn

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Similarly one may ask, can student loans be forgiven after 25 years?

Loan Forgiveness

After 25 years, any remaining debt will be discharged (forgiven). Under current law, the amount of debt discharged is treated as taxable income, so you will have to pay income taxes 25 years from now on the amount discharged that year.

People also ask, can you switch between Repaye and PAYE? You can switch from REPAYE to PAYE as long as you still qualify for PAYE. Or you can switch back to IBR instead if you had older loans and didn’t qualify for PAYE to begin with.

Furthermore, does Repaye qualify loan forgiveness?

How does REPAYE work with Public Service Loan Forgiveness (PSLF)? REPAYE payments count toward the 120 payments that are required to qualify for PSLF. After that, your loans are erased.

How many years is Repaye?

With REPAYE, your monthly payment is typically 10 percent of your discretionary income, and you’ll make payments for 20 to 25 years. At this time, your remaining loan balance is forgiven. The following types of student loans are eligible for REPAYE: Direct Subsidized Loans.


If you’re having a hard time making your federal student loan payments, an income-driven repayment (IDR) plan like Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE) could help. PAYE and REPAYE are repayment plans for federal student loans that set your payment at 10 percent of your discretionary income.

Is Repaye a good idea?

Revised Pay As You Earn, or REPAYE, is a good option if you’re single and don’t have grad school debt.

Is Repaye based on AGI?

REPAYE is the exception — it always uses your spouse’s income unless you’re separated or can’t reasonably access this information. Your spouse’s income could have a big impact on your monthly payments. For example, let’s say you owe $30,000, your AGI is $40,000 and your spouse’s AGI is $100,000.

Is Repaye based on tax return?


Your loan servicer will generally use both your income and your spouse’s income to calculate your monthly payment amount, regardless of whether you file a joint federal income tax return or separate federal income tax returns.

Should I switch from PAYE to Repaye?

You can switch from PAYE to RePAYE, but that is almost certainly not a good idea. … If you wait until after your income goes up, PAYE will no longer be an option as you have to qualify same as the IBR discussion above. RePAYE will not be a good option because you lose the payment cap available while in IBR.

What are the different IDR plans?

We offer four income-driven repayment plans:

  • Revised Pay As You Earn Repayment Plan (REPAYE Plan)
  • Pay As You Earn Repayment Plan (PAYE Plan)
  • Income-Based Repayment Plan (IBR Plan)
  • Income-Contingent Repayment Plan (ICR Plan)

What is IDR forgiveness?

Forgiveness occurs when you reach the maximum repayment period under an income-driven repayment plan (IDR), like Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE).

What is the difference between PAYE and Repaye?

Generally speaking, PAYE is a better option for married borrowers in cases where both spouses have an income. REPAYE is typically better for single borrowers and people who don’t qualify for PAYE.

Which is better Repaye or IBR?

Borrowers with older Direct loans may face a choice between REPAYE and the pre-July 2014 IBR formulation. Most will do better under REPAYE because their IBR payment would be higher (15% of discretionary income vs 10%) and, if they have only undergraduate loans, their IBR repayment period will be longer (25 years vs.

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