Trouble making student loan payments? Get on the Pay As You Earn program to adjust monthly payments with your income.
If you are a new Direct Loan borrower as of October 1, 2007, with a disbursement made after October 1, 2011, you may qualify for this option. Any Direct Consolidation loan made on or after October 1, 2011, that does not include a Parent PLUS loan or a loan made prior to October 1, 2007 is eligible.
You must make 20 years (10 if you work in public service) of payments under the Pay As You Earn repayment plan. Not all borrowers qualify for Pay As You Earn. To qualify, you must have a partial financial hardship; payments to your eligible loans exceed 10% of your discretionary income.
Pay As You Earn caps your maximum monthly payment at 10% of discretionary income (the difference between your AGI and 150% of the annual poverty guideline for your family size and state).
If you are eligible, you can have up to 100% of your outstanding balance (after 240 eligible payments) forgiven.
To apply for Pay As You Earn forgiveness, sign in to studentloans.gov and complete a PAYE request form.