Obama’s ‘Pay As You Earn’ Plan For Student Borrowers Becomes Official

In a package of final regulations being released on Thursday, the Department of Education will formally establish the Obama administration's new "Pay as You Earn" income-based repayment program, which will help many student-loan borrowers.

Included separately in the package are provisions that will make it easier for disabled borrowers to have their loans forgiven.

Under the existing income-based repayment program, eligible student-loan borrowers can have their monthly payments capped at 15 percent of their income, and they can generally receive loan forgiveness after 25 years of payments.

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THE CHRONICLE OF HIGHER EDUCATION

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