The student loan space can be an oftentimes daunting and unnecessarily complex space. The aim of this article is to provide some clarity with regards to the various options when it comes to federal student loans repayment options and the Public Service Loan Forgiveness program.

Pay as You Earn (PAYE)

This plan is typically best for clients looking for forgiveness of their loans since it will likely be the lowest payment option if a spouse is involved. The reason is because this program allows you to file your taxes separate from spouse and isolate only your income; therefore, only paying a payment based on your income and not grouped in with your spouse’s. There is also a cap on the payment amount that cannot exceed that of a Standard 10yr repayment.

The monthly payment is going to be 10% of your discretionary income but unfortunately, not everyone qualifies for this program. To qualify, you need to show a “partial financial hardship” and you cannot…

Read more…