Scrolling Headlines:

The Collegian live tweets Boston Calling -

May 28, 2016

UMass baseball finishes season with sweep over George Mason -

May 22, 2016

UMass women’s lacrosse falls in NCAA quarterfinal -

May 22, 2016

‘Green Room’ is a bloody blast of survival horror -

May 21, 2016

DaLuz: Boston Celtics stuck trudging in the mud -

May 18, 2016

Despite tallying double-digit hits, UMass baseball falls to Fairfield Tuesday afternoon -

May 17, 2016

Radiohead returns to the top with gorgeous, illuminating ‘A Moon Shaped Pool’ -

May 16, 2016

UMass women’s lacrosse advances to quarterfinal of NCAA tournament -

May 16, 2016

UMass baseball outlasts Rhode Island in series finale behind strong pitching of Brandon Walsh -

May 15, 2016

Eileen McDonald’s overtime goal advances UMass women’s lacrosse in NCAA tournament -

May 14, 2016

12 UMass students face possible arrests in connection to an alleged bad LSD trip -

May 14, 2016

UMass baseball falls in first-ever Division I matchup with UMass Lowell 7-3 -

May 11, 2016

UMass baseball gets shut out in nonconference matchup with UConn -

May 10, 2016

UMass women’s lacrosse tops Richmond, wins eighth straight Atlantic 10 championship -

May 9, 2016

UMass baseball salvages last game of weekend series with Richmond behind strong eighth inning -

May 9, 2016

UMass women’s lacrosse beats St. Joe’s, advance to Atlantic 10 championship game -

May 7, 2016

Lack of offense plagues UMass baseball in game two of doubleheader with Fordham -

May 1, 2016

UMass women’s lacrosse tops Davidson 12-5 on Senior Day -

May 1, 2016

Two arrested after report of aggravated robbery in Washington Hall last night -

May 1, 2016

Former UMass wide receiver Tajae Sharpe selected in fifth round of 2016 NFL Draft -

April 30, 2016

New option available to repay student debt

Flickr / DonkeyHotey

Students who borrow loans from the U.S. government to help pay for their education now have a new option when paying off their debt called the Pay As You Earn Repayment Plan, which will lower monthly federal student loan bills for eligible borrowers.

First announced by President Barack Obama in October 2011, Pay As You Earn caps payments for Federal Direct Student Loans at 10 percent of discretionary income for eligible borrowers. The U.S. Department of Education estimates that as many as 1.6 million Direct Loan borrowers could reduce their monthly payments, including teachers, nurses, first-responders and other lower-paying public service workers.

“We know many recent graduates are worried about repaying their student loans as our economy continues to recover, and now it’s easier than ever for student borrowers to lower monthly payments and stay on track,” said U.S. Secretary of Education Arne Duncan in a press release.

To qualify for Pay As You Earn, a borrower must have a partial financial hardship as defined by the U.S. Department of Education. A person has a partial financial hardship if their payments  under a 10-year Standard Repayment Plan are higher than the required payments under the Pay As You Earn plan.

A student must also be a new borrower as of October 2007 and the federal student loan debt must be high relative to the borrower’s income. The monthly payment amount is partially dependent on income and family size.

Under Pay As You Earn, a borrower may be eligible for 20-year forgiveness, which forgives any remaining student loan debt after 20 years of qualifying repayments. Furthermore, if a borrower is employed full-time by a public service organization and makes 10 years of on-time payments, they may be eligible to receive forgiveness of the remaining balance of their direct loans through the Public Service Loan Forgiveness Program. Any forgiveness of loans, though, is subject to taxation.

Because reduced payments under the plan mean repaying loans for a longer period of time, the total interest over the life of the loan will be higher than it may be under other repayment plans. However, if the monthly payment does not cover the interest that accumulates on the loans each month, the U.S. government will pay the accumulated interest for up to three years.

Ed Blaguszewski, Executive Director of News and Media Relations at UMass Amherst, said that the university fully supports Pay As You Earn and thinks that it will be helpful for students looking for a repayment plan that better suits their needs.

“Even for students that may not need 20 years, this could be helpful,” he said.

Blaguszewski said that Financial Aid Services only distributes loans, and it is the responsibility of the student to repay any loan debt left with them at the end of their education at UMass.

“We don’t say to students, do you want to repay the loan with the new plan or the old one,” he said. Blaguszewski added, though, that this new plan is something that students may want to look into.

Pat Hoff can be reached at pphoff@student.umass.edu.

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