Switch To An IDR Plan For Lower Payments Or Student Loan Forgiveness
IDR is also important for borrowers seeking student loan forgiveness. These plans result in the discharge of any remaining balance at the end of the repayment term, which is either 20 or 25 years, depending on the specific plan. IDR is also required for borrowers to make progress toward Borrowers currently enrolled in REPAYE will be automatically converted to SAVE, so those borrowers do not have to take any steps to change plans . But borrowers on IBR would need to change repayment plans. While
One unique benefit of the PAYE plan is that it has a 20-year repayment term for all eligible borrowers, meaning a borrower can receive student loan forgiveness after 20 years in the program. SAVE, on the other hand, only has a 20-year term for undergraduate loans; it has a 25-year term for graduate school loans. So even though SAVE will have lower payments, the five extra years of repayment for higher-earning graduate school borrowers could offset those savings.
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