What are the income-based repayment programs available for student loans?

In New Mexico, income-based repayment programs are available for student loans to help ease the burden of loan repayment. These programs are designed to lower the monthly payments for those struggling to keep up with their loan payments. The two main programs available are Income-Based Repayment (IBR) and Pay As You Earn (PAYE). IBR is available for borrowers who took out loans prior to July 1, 2014, and PAYE is available for those who took out loans after this date. With IBR, the monthly payment is limited to 15% of a borrower’s discretionary income, defined as adjusted gross income minus 150% of the poverty guideline for the borrower’s family size. Any remaining balance after 20 or 25 years of qualifying payments will be forgiven. PAYE has the same income requirement, but monthly payments are limited to 10% of discretionary income instead of 15%. Any remaining balance after 20 years of qualifying payments will be forgiven. Both IBR and PAYE are available to income-eligible borrowers taking out federal student loans. Borrowers can apply for their respective program online through the Department of Education’s website.

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What are the income-based repayment programs available for student loans?

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