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New Loan-Repayment Program Allows Student Borrowers to Pay as They Earn

Chronicle of Higher Education


June 30, 2009


The plan, which takes effect Wednesday, was created as part of the 2007 College Cost Reduction and Access Act. A borrower's monthly payment will be set at 15 percent of the person's monthly disposable income. Borrowers who earn less than 150 percent of the federal poverty level will not have to pay anything on their loan debt until their income rises.


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