Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
REPAYE vs. PAYE: How these repayment plans stack up
It all depends on if you're paying off student loans from undergrad or graduate school.
The Pay As You Earn (PAYE) Repayment Plan might offer a better deal for graduate students — you’d have to wait five more years to qualify for forgiveness on the Revised Pay As You Earn (REPAYE) Repayment Plan. But you run the risk of getting kicked off the PAYE Plan if your income gives you higher repayments than you would have had on the Standard Repayment Plan — which means no forgiveness. If you’re an undergraduate borrower, REPAYE might be the way to go.
How these federal repayment plans compare
| Revised Pay As You Earn (REPAYE) Repayment Plan | Pay As You Earn (PAYE) Repayment Plan | |
|---|---|---|
| Best for... | Student borrowers who are single and paying off undergraduate debt in a low-paying field | Student borrowers with a high debt-to-income ratio who are either single or married and file taxes separately |
| Eligible loans |
*Only qualify if consolidated with a Direct Consolidation Loan. |
*Only qualify if consolidated with a Direct Consolidation Loan. |
| How much you pay |
|
|
| Repayment Term |
|
|
| Eligibility requirements |
|
|
| Eligible for forgiveness at the end of the term | ||
| Eligible for Public Service Loan Forgiveness | ||
| Required to reapply each year |
Yes |
Yes |
| Pros |
|
|
| Cons |
|
|
| |
Not sure either is right for you? Explore your other options with our guide to student loan repayment plans.
Interested in refinancing instead? Compare your options
More guides on Finder
-
Student loans and the coronavirus: Where to find relief
You won’t pay interest for at least 60 days on federal loans. But what about private student loans?
-
Best dental school loan forgiveness options
Pay off anywhere from $20K to your full balance, depending on the program.
-
10 ways to pay for college at the last minute
What to do when you’re skirting the deadline.
-
MBA student loan refinancing options
Compare our top 6 picks for getting a better deal after you graduate B-school.
-
How often can you refinance student loans?
The sky’s the limit — just make sure you’re getting a good deal.
-
Small business loan amounts: How much can I borrow?
It all depends on the lender and type of financing you’re interested in.
-
How to pay for college
Explore free aid, student loans, employer-based programs and more.
-
REPAYE vs. PAYE vs. IBR: How these repayment plans stack up
PAYE might be the way to go unless you have older loans or a higher income.
-
IBR vs. ICR vs. REPAYE: How these repayment plans stack up
It all depends on your degree type, when you took out the loan and if you’re a student or parent borrower.
-
PAYE vs. IBR vs. ICR: How these repayment plans stack up
It comes down to when you borrowed and if you’re a parent or student.
Ask an Expert