As of December 17, 2015, all Direct Loan borrowers may choose to repay their student loan debt through a new income-driven repayment plan. The Revised Pay As You Earn (REPAYE) Repayment Plan extends benefits of Pay As You Earn (PAYE) repayment plan to more students. Under these income-driven repayment plans, borrowers make monthly payments of no more than 10 percent of their discretionary income. The remaining amount owed after 20 years of payment, for borrowers with undergraduate debt only, or after 25 years, for borrowers with graduate debt, is forgiven. The forgiven amount is still taxable. Final regulations were published October 27, 2015.

The Department of Education website provides background and more detail about the program.