The United States Department of Education (DOE) proposed a regulation Tuesday morning to revise student loan repayment plans to reflect borrowers’ income.
The plan intends to reduce student loan repayments for the middle and lower class by amending the Revised Pay As You Earn (REPAYE) plan, which “is a repayment plan with monthly payments that are generally equal to 10% of your discretionary income, divided by 12,” according to its website. The proposal would permit individual borrowers who earn less than $30,600 per year and any borrower in a family of four who makes less than $62,400 to choose a $0 monthly plan, Tuesday’s announcement read.
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