![]() Borrowers with public service jobs can have their remaining balances forgiven after 10 years, while those in other jobs are eligible for forgiveness after 25 years. This program caps payments at 15% of discretionary income. Those borrowers are currently eligible for another, older program called Income Based Repayment, or IBR. The expansion to borrowers with older loans is expected by the end of 2015. 1, 2007, and who received a federal loan disbursement after Oct. The program is currently only available to those who were new borrowers as of Oct. Pay As You Earn caps payments at 10% of the borrower's discretionary income, which is defined as the amount exceeding 150% of the poverty level for the household. Obama's executive order extends the Pay as You Earn repayment program to about 5 million more borrowers with older loans. "You could really be struggling and still not qualify for one of these programs," said Deanne Loonin, director of the National Consumer Law Center's Student Loan Borrower Assistance Project. Private student loans and parent PLUS loans are not eligible for income-based options, and borrowers with huge debt loads can be shut out if their incomes are too high. ![]() Some of the most burdened borrowers, however, will get little if any relief, financial aid experts said. President Barack Obama's expansion of an income-based repayment program offers additional help for millions of Americans struggling with federal student loan debt. ![]()
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