The Pay As You Get program is a US federal program approved into law on December 21, 2012. This is the first student debt relief law signed by President Barack Obama.
Video Pay as You Earn (PAYE) - Federal Student Loan Relief Program
Qualification
Only new borrowers who can qualify if they receive a loan disbursement on or after October 1, 2011. You are a new borrower if you do not have an outstanding balance of Direct Loans or FFEL Program loans when you receive a Direct Program Loan or FFEL loan on or after October 1, 2007 As with Income Based Income (IBR), the borrower must prove Partial Financial Hardship.
Maps Pay as You Earn (PAYE) - Federal Student Loan Relief Program
Proposed changes
President Obama's 2015 budget proposes major changes to the Pay As You Earn program. In addition to extending the program to all borrowers, regardless of when their first loan was disbursed, it proposed a certain limit for PAYE designed to "protect against institutional practices that could further increase student debt, while ensuring the program provides sufficient assistance to students committed to serving the community. "The proposed changes include:
o Eliminate standard payout limits under PAYE so high-income and high-paying borrowers pay their fair share of earnings when their income rises;
o Calculating payments for a married borrower who filed separately on a combined Adjusted Household Income;
o Fencing Embezzlement of Public Sector Loans (PSLF) on aggregate lending limits for independent undergraduate students to protect against institutional practices that can further increase student debt, while ensuring programs provide sufficient assistance to students who are committed to serving the public;
o Setting a 25-year pardoning period for borrowers with balances above the aggregate loan limits for independent undergraduate students;
o Prevent payments made under non-income payment plans that are encouraged from those applied to the PSLF to ensure that loan forgiveness is targeted to the student with the greatest need; and
o Pressing the amount of interest that can increase when a borrower's monthly payment is not enough to cover the interest to avoid the ballooning loan balance.
In short, even though the budget proposes to expand PAYE for all borrowers, it severely limits the benefits for those who have high student loan balances and for those who pursue careers in the public interest. If approved, it is unclear whether those who borrowed before the changes implemented will be categorized into existing PAYE, IBR, and PSLF plans.
The petition has begun asking the White House to reconsider its restrictions on the PSLF program.
PAYE extension
On June 9, 2014, President Barack Obama announced an executive order to extend Pay as You Earn (PAYE) payments for student loans obtained before October 2007.
Worthy loan
- Direct Subsidized and Unsubsidized Loans
- Direct Plus Loans for Graduates and Professionals
Loans are not eligible
- Personal Loans
- Parent Plus Loans
References
External links
- Financial Aid
- Student Help
- [1]
Source of the article : Wikipedia
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