Pay as you earn (PAYE) is one of the income dependent repayment plans introduced by the Obama administration in 2010, and came into effect in December 2012. It is a repayment plan for graduates who are struggling to make their student loan payments, as it allows them to repay less of their student loans based on their income, and shortens the repayment period compared to other income-based repayment plans. While Income Based Repayment (IBR) came as a bonanza for borrowers, PAYE is an even better deal. Here are some points which makes PAYE a better repayment option: Pay only 10% of discretionary Income. Make payments only for 20 years, after that remaining loan amounts will be forgiven. If th
The United States, largest economy of the world, has been struggling with huge amount of debts. The nationwide total of household debts which consist of mortgage loans, student loans, auto loans and credit card loans has reached approximately $ 12 trillion. Although mortgage loans account for the largest portion of the total household debt , student loan has the highest percentage of delinquency among all the loans, and shows a continuous increase in total loan balance. Millennial are having a tough time paying off their student loans. According to the latest report of Federal Reserve Bank Of New York, as of December 31, 2014 Student loans showed a $ 77 billion increase from the previous ye
