News Regarding Federal Loan Repayment

News this morning from our friend Heather Jarvis, student loan expert:

Introducing the New “Pay As You Earn” Student Loan Repayment Plan

Final regulations implementing the President's “Pay As You Earn” repayment initiative have just been published. The regulations provide for reduced payments for some federal student loan borrowers and improve the federal student loan disability discharge process.

Early highlights include:

“Pay As You Earn”
The Department of Education agreed with our recommendation to adopt a descriptive and consumer-friendly name for the new repayment plan—Pay As You Earn it is.

Implementation Date Still Unknown:
Under the Higher Education Act, regulations typically must be published in final form by November 1 in order to apply the following July 1. However, the Secretary of the Department of Education may permit a designated regulation to be implemented earlier. Pay As You Earn has been designated for early implementation, but exactly when borrowers can access it remains unannounced.The Department “intends to implement the regulations governing the Pay As You Earn repayment plan as soon as possible” and reports that it will publish a separate notice to announce when the plan becomes available to borrowers.

For more information, go to www.askheatherjarvis.com.  Heather is a friend to law schools and law school grads across the country and a great source for reliable information!