The US Department of Education has announced that many borrowers are now able to take advantage of a new repayment plan that could lower their monthly federal student loan bills.
The plan, known as Pay As You Earn, caps monthly payments for many recent graduates at an amount that is affordable based on their income. This new option follows through on President Obama’s promise to provide student borrowers with relief on their student loan payments and help them responsibly manage their debt.
“We know many recent graduates are worried about repaying their student loans as our economy continues to recover, and now it’s easier than ever for student borrowers to lower monthly payments and stay on track,” said U.S. Secretary of Education Arne Duncan.
In addition, the Education Department has developed resources such as the Financial Awareness Counseling Tool, which helps borrowers better understand their loan obligations and manage their finances. To access the tool – and for more information about all federal student loan repayment plans, including eligibility criteria and repayment plan calculators – visit StudentAid.gov.