The REPAYE Plan was recently phased out and was replaced by the SAVE Plan. For info on SAVE, click here.
Everyone’s financial goals are different, and there are other factors which might affect which repayment plans you are eligible for.
Every plan displayed in the Savi tool - with the exception of Standard - is an income-driven plan. Any Income-Driven plan (IDR) would be eligible for PSLF. However, they are calculated differently. If your goal is the lowest monthly payment, select the lowest available plan to you. If your goal is to pay off your loans as quickly as possible (this might mean a higher payment), select the plan that is most aligned with that goal.
REPAYE (Revised Pay As You Earn) is an income-driven repayment plan (IDR) which calculates your monthly payment accordingly:
- 10% of discretionary income, with no cap. Payments could be higher than they’d be on the standard plan.
- Eligible Loan Types include: Direct Subsidized, Direct Unsubsidized, Direct PLUS loans (graduate or professional students), Direct Consolidation Loans which do not contain any Parent PLUS Loans
- These Loan Types are NOT eligible: Direct PLUS Loans, Direct Consolidation Loans which contain Parent PLUS Loans
- Repayment period
- 20 years if you only have undergraduate loans.
- 25 years if you have any graduate school loans.
A few other things to consider about REPAYE:
- If you're married, both your and your spouse’s income or loan debt will be considered, whether taxes are filed jointly or separately (with limited exceptions).
- Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study). The forgiveness amount will be taxable in the year it is claimed if you are not eligible for PSLF.
For more information about REPAYE, click here.
Think carefully about your financial goals for your student loans, and which plan best aligns with those goals. Also note, for Income Driven Repayment plans, you need to recertify your income every twelve months. The plan you select will only reflect the payment amount until you recertify your income again the following year. This means that if your income increases, your payments will also increase. Same if your income decreases significantly.