REPAYE
What Is REPAYE?
REPAYE (Revised Pay As You Earn) was a federal student loan repayment plan that calculated payments based on a percentage of discretionary income.
REPAYE applied to Direct Loan borrowers regardless of when loans were disbursed.
It has been replaced by the SAVE Plan for most borrowers.
Why It Matters
REPAYE:
- Calculated payments at 10% of discretionary income
- Offered forgiveness after 20 or 25 years
- Provided interest subsidy benefits
Understanding REPAYE remains relevant for borrowers transitioning to newer plans.
How REPAYE Works
REPAYE calculated payments annually based on updated income information.
Example: A borrower earning $50,000 could see payments adjusted each year depending on income and family size.
Interest subsidies reduced unpaid interest accumulation in certain cases.
Borrowers were transitioned into SAVE as policies evolved.
REPAYE vs. SAVE
REPAYE → Prior plan structure
SAVE → Updated plan with expanded benefits
Policy updates changed repayment calculations.
FAQs About REPAYE
Is REPAYE still available?
Most borrowers are now covered under SAVE.
Did REPAYE offer interest subsidies?
Yes, partial unpaid interest subsidies applied.
Does REPAYE require annual recertification?
Income updates were required each year.
Related Terms
