Is the REPAYE Plan right for you?

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There are many government-based programs people can use to obtain financial aid for their studies, whether it be through grants or loans, but for the most part people tend to not only take out loans from the government, but privately as well. This leaves many in the scary post-graduate position of standing underneath a looming cloud of debt. As thousands stand in their caps and gowns, semester after semester of students wonder why they were so enticed by ‘free money’ – what was once was amazingly free is now not only very real, but owed to someone stronger and more powerful than you.

Although debt can be intimidating, it doesn’t have to be debilitating. Everyone knows how to get money from the government, but what many people don’t know about are the existing programs that help students manage their debt. One of the best programs that offer post-graduation loan payback is the Revised Pay as You Earn, or REPAYE Plan, which was passed in late 2015 by the Department of Education under the Obama administration. The plan is overall great for students, but still has its downfalls. The concept of the REPAYE Plan is essentially that each individual is required to pay at least 10% of whatever their monthly income is. For example, for a student that is only making $1,000 a month, they are simply required to make a $100 payment toward their bill. This plan is fantastic because it not only accommodates to everyone’s different levels of income, which vary greatly, especially after college, but because it also offers the everyday post-graduate some room to live comfortably while they still figure out how they’re going to pay back their loans long-term. Additionally, the program offers assistance to those who simply don’t have an interest in having a big, successful career that college expects you to venture out for. It’s known year after year that a college degree is having less and less value, especially with this current generation. This leads to the negatives of the REPAYE program, which is the fact that it gives students incentive to pay back their loans slower, and thus gives less incentive to work hard, although for some a simple life is all that’s desired.

Whether you’re looking for a bit of assistance while you’re getting adulthood together, or simply looking for a helping hand so that you don’t have to work yourself to death to pay back ridiculous monthly payments, the REPAYE program’s benefits certainly outweigh its negatives.