November 1, 2012

Obama's 'Pay as You Earn' Plan for Student Borrowers Becomes Official

By Michael Stratford

Washington

In a package of final regulations being released on Thursday, the Department of Education will formally establish the Obama administration's new "Pay as You Earn" income-based repayment program, which will help many student-loan borrowers.

Included separately in the package are provisions that will make it easier for disabled borrowers to have their loans forgiven.

Under the existing income-based