Pay As You Earn
E576954
Pay As You Earn is a U.S. federal student loan repayment plan that caps monthly payments at a percentage of discretionary income and offers potential loan forgiveness after a set period.
Statements (40)
| Predicate | Object |
|---|---|
| instanceOf |
U.S. federal student loan repayment plan
ⓘ
income-driven repayment plan ⓘ |
| administeredBy | U.S. Department of Education NERFINISHED ⓘ |
| appliesTo |
Direct Consolidation Loans without Parent PLUS loans
ⓘ
Direct PLUS Loans made to students ⓘ Direct Subsidized Loans NERFINISHED ⓘ Direct Unsubsidized Loans NERFINISHED ⓘ federal student loans ⓘ |
| calculationUses |
adjusted gross income
ⓘ
family size ⓘ state of residence ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| effect |
extends repayment period compared to standard plan
ⓘ
reduces required monthly payment for eligible borrowers ⓘ |
| eligibilityDependsOn |
date of first federal loan disbursement
ⓘ
having no outstanding balance on certain older federal loans ⓘ type of federal loan ⓘ |
| excludes |
Direct Consolidation Loans that repaid Parent PLUS Loans
ⓘ
Parent PLUS Loans ⓘ |
| forgivenessAfter | 20 years of qualifying payments ⓘ |
| goal |
make federal student loan payments more affordable
ⓘ
provide path to loan forgiveness for long-term payers ⓘ |
| hasAlternativeName | PAYE NERFINISHED ⓘ |
| introducedAs | income-driven repayment option ⓘ |
| language | English ⓘ |
| legalFramework | Higher Education Act of 1965 as amended NERFINISHED ⓘ |
| mayLeadTo | taxable forgiven balance under prior tax rules ⓘ |
| mayResultIn | interest capitalization under certain conditions ⓘ |
| offers | loan forgiveness ⓘ |
| paymentBasis | discretionary income ⓘ |
| paymentCapPercentage | 10 percent of discretionary income ⓘ |
| paymentFrequency | monthly ⓘ |
| relatedTo |
Income-Based Repayment
NERFINISHED
ⓘ
Income-Contingent Repayment NERFINISHED ⓘ Revised Pay As You Earn ⓘ |
| requires |
annual income recertification
ⓘ
federal student loan servicer to calculate payment amount ⓘ partial financial hardship ⓘ |
| sector | education finance ⓘ |
| targetedAt | borrowers with high debt-to-income ratios ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.