Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog
PAYE is an income driven plan which allows for a 20 year term — but it’s expected to age out in 2028 due to the transition to RAP. So if your count can get to 20 years before then, you should think about moving to PAYE (your loans would qualify if you did not have a loan prior to October 2007 and had a Direct loan after October 2011). I know these loan dates will restrict many, but 20 years is far better than 30 years under RAP if your loans are eligible. Please refer to our prior blogs about how to check your IDR count.
Some other news we’ve learned in the student loan world is:
- If you qualify for private sector IDR forgiveness in 2025, you’ll have no tax consequences even if the forgiveness is processed in 2026
- Rule making is ongoing and expected to be concluded next July (this will set new rules for some of the finer points).
