Nationwide Student Loan Lawyer Services
The world of student loans can be confusing and it’s ever-evolving. At Kaplan Law Firm, we can guide you each step of the way, helping you get debt free, stress-free.
Learn more about Student Loans here
How do I obtain a loan? Is the Biden Administration going to cancel debt? These are just a couple of the common questions we at the Kaplan Law Firm get from students and families, and we’re in the know on all of them.
We at Kaplan Law Firm are dedicated to helping students and families navigate the complex world of student loans. Our team understands the challenges that come with financing higher education and is committed to providing comprehensive solutions that fit your unique needs.
Our Student Loan Debt Settlement Services
Our team plans and consults with students and families to determine the best course of action toward limiting and eliminating debt. In most cases, your federal loan will be eligible for one of four types of income-driven repayment plans provided by the United States Department of Education.
Income driven repayment plans are qualifying payment plans for those seeking forgiveness under public sector loan forgiveness. These are plans that have manageable monthly payments calculated based on your wages or other income and how large your family is. They are the Revised Pay as You Earn Repayment Plan, the Income-Based Repayment Plan, the Income-Contingent Repayment Plan, and the Pay As You Earn Repayment Plan.
Let’s break these down.
Income-Contingent Repayment Plan
Income-contingent repayment plans allow you to repay your loans based on either 20% of your discretionary income or what you would pay on a repayment plan with a fixed income over a 10 or 20 or 25 year year period adjusted based on your income, and type of loans. You may make payments under this plan if you are a borrower who has eligible federal student loans.
Income-Based Repayment Plan
An Income-Based Repayment Plan determines a monthly payment at 10% of your discretionary income or 15% of your discretionary income, depending on the timing of your loan. The amount is never greater than a 10-year Standard Repayment Plan Amount and can run for up to 25 years, depending on the type of loans.
Pay-As-You-Earn Repayment Plan
- A Pay-As-You-Earn Repayment Plan requires you to pay 10% of your discretionary income up to the 10-year Standard Repayment Plan Amount.
- There is also a revised “Pay as you Earn” or “REPAYE” plan set to arrive in 2024 that will allow borrowers to cut their payments in half and receive a 100% interest rate/subsidy.
Balance Based Payment Plan
Balance based payment plans are an extended repayment plan. Borrowers must have more than $30,000 in outstanding direct loans and the payments may be fixed or graduated, increasing by 4% every two years for a total payment term of 25 years. As a general rule, borrowers will pay more than the amount they borrowed under these payment plans. These payment plans do not qualify for public service loan forgiveness.
