Repayment Plans Flashcards
1
Q
Who is eligible to enroll in the SAVE Plan?
A
Any Direct Loan borrower with eligible loan type may choose this plan
2
Q
Who is eligible to enroll in the PAYE Plan?
A
new borrower on or after 10/01/07, and must have received a disbursement of a Direct Loan on or after 10/01/11
3
Q
Who is eligible to enroll in IBR?
A
must have a high debt relative to income
4
Q
Who is eligible to enroll in ICR?
A
Any Direct Loan borrower with eligible loan type may choose this plan
5
Q
What does SAVE stand for?
A
Saving on a Valuable Education
6
Q
What does PAYE stand for?
A
Pay as you earn
7
Q
What does IBR stand for?
A
Income Based Repayment
8
Q
What does ICR stand for?
A
Income Contingent Repayment
9
Q
Which repayment plans qualify for PSLF?
A
SAVE, PAYE, ICR and IBR.
10
Q
What are the benefits of PAYE?
A
- Cap on how high MMP can go regardless of income amount (10 year standard amount).
- Grandfathered/locked in and cannot be removed for how high income increases
- PAYE is generally lower than ICR/IBR.
- MFS doesnt take spouses income account
