Calling all people with federal student loan debt! Starting today, yes, today, the “Pay as You Earn” program from the Obama administration allows eligible student-loan borrowers to cap you monthly payments at 10 percent of their discretionary income. Also, after 20 years, your student loans can be forgiven. I knew there was a reason that the world didn’t end, today, regardless of the alleged Mayan urban legend that claimed that it would!
To be eligible, you have to have taken out your loans after Oct. 1, 2007 and gotten at least one disbursement after October 2011. You must also have some form of financial hardship. Private loans from banks and non-federal lenders are not included.
The monthly payments are based on family size and income.
Find out if you’re eligible for the “Pay As You Earn” plan. Happy Saving!
Photo Courtesy of Flickr