A new version of the federal government's Income Based Repayment program for Student Loans, called "Pay As You Earn", took effect in Dec. 2012. Payments are equal to 10% of your discretionary income, and payments are made over a period of 20 years, with all remaining debt generally forgiven after 20 years of on-time payments (or after 10 years for those in qualified public service if all payments are made on time and other requirements are met). This repayment plan should be extended to all current student loan holders, not just those new borrowers as of October 1, 2007, and those receiving disbursement after Oct. 1, 2011, as included in the current plan. Those with earlier student loans may be as financially challenged as newer borrowers and should be accorded the same repayment choices.
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