Consolidating private student loans into federal

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On this plan, you will make payments for 25 years, and at that point, your loans will be forgiven.If you are a borrower with loans July 1, 2014, your loan will not exceed 10% of your discretionary income, and the loan will be forgiven after just 20 years.

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The secret is simple: sign up for a qualifying student loan repayment plan, and your loan will be forgiven at the end of the plan. What's even better is that your income could be low enough to qualify for zero or minimal repayment, at which your loan will be forgiven at the end.With IBR, you loan repayment will never exceed the payment of the 10 year standard repayment plan, and your loan will also be forgiven at the end of the term.The actual amount of your “discretionary income” is determined by a formula based on your family size and income tax returns.Unlike PAYE, which was available for loans taken out after 2007, Re PAYE is open to all Direct Loan Borrowers, regardless of when the loan was taken out.The repayment plan still caps your payment at 10% of your discretionary income, and the loan will be forgiven after 20 years.For both IBR and PAYE, it might make sense to file your tax return married filing separately to qualify.

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