WarningStudent loan debt is of such a big concern that the Government is actively trying to find ways to address this. Currently there are plans being constructed to have better access for income driven repayment plans. This would include capping the payment to 10% of the discretionary income of the student who is borrowing.

This is in regards to the latest proposed income driven repayment plan. It is being called “Repaye” or “Pay as you Earn”. There are specific loans that would be included under this new plan. At the conclusion of 20 years while under the plan undergrad borrowers would have any remaining balance forgiven. However, this unforgiven balance would be hit with a tax as it would be classed as income.

The general consensus is that this new plan might work well for some, but for others the current plan they may have would still be their best option.

Students who are faced with student loan debt are under a great deal of pressure. It often means that they will jump into a repayment loan plan that really isn’t their best option. The wise move is to speak with a student loan debt relief lawyer. This expert can advise them as to what other options are available, and may have some alternative solutions. Income driven plans are often considered by students based on the forgiveness portion of it. What often happens is that they end up paying back more than the original debt. It is important when considering the repayment of student loans to have professional advice.

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