Consolidating student loans public and private
If you want help, we recommend Ameritech Financial, a company I’ve personally vetted.
They can help you navigate the student loan terrain and help you systematically apply for the programs offered by the Department of Education.
Unlike PAYE, which was available for loans taken out after 2007, Re PAYE is open to all Direct Loan Borrowers, regardless of when the loan was taken out.
The repayment plan still caps your payment at 10% of your discretionary income, and the loan will be forgiven after 20 years.
But this statistic is misleading, because a lot of borrowers think this means qualifying for some type of student loan forgiveness program. Actually, most borrowers qualify for student loan forgiveness through one of these “secret” ways.
The secret is simple: sign up for a qualifying student loan repayment plan, and your loan will be forgiven at the end of the plan. What's even better is that your income could be low enough to qualify for zero or minimal repayment, at which your loan will be forgiven at the end.
With IBR, you loan repayment will never exceed the payment of the 10 year standard repayment plan, and your loan will also be forgiven at the end of the term.
The Pay As You Earn Repayment Plan (PAYE) is very similar to the IBR Plan.
Under this plan, your payments will be the lesser of the following: With the ICR plan, your loans will be forgiven at the end of 25 years.
It's important to note that with this plan, your payments could end up being higher than the standard 10 year repayment plan.
The Re PAYE plan also includes an interest subsidy that would help cover 50% of the interest in cases where the new payments cannot keep up with the accruing interest.
You can learn more about how Re PAYE is helping borrowers here.