![]() After 120 qualifying payments, we could apply for tax-free forgiveness for the balance of the loan. Public Service Loan Forgiveness (PSLF) requires us to sign up with one of the four major options. Finally, if we chose the Standard plan, she would just pay the monthly payment that would have resulted in complete payback of her original loan balance within 10 years.If we chose the PAYE plan, her monthly payment would only be 10% of her income.Since all her loans predate 2014, she would be on the old IBR plan that charges 15% of income. ![]() The IBR program is either 10% or 15% of discretionary income depending on the year of her loan issuance.REPAYE would have no cap on her monthly payments, which would be 10% of her discretionary income.There are four main repayment programs within the federal student loan program: I highlighted the most expensive repayment option in red, and I highlighted the cheapest option in green. Account icon An icon in the shape of a person's head and shoulders.
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