Madison Monroe & Associates’ Rafael Ulloa Assists With President Obama’s Pay As You Earn Program

MIAMI, FL–(Marketwired – Dec 30, 2015) – There’s exciting news out of Washington for those struggling under the weight of student loan debt, according to Madison Monroe & Associates, a leading debt relief firm located in Miami, Florida.
President Obama’s new Revised Pay As You Earn (REPAYE) Plan became available to Federal Direct Student Loan borrowers on Dec. 17, 2015. The president first issued a presidential memorandum in June 2014 directing the Department of Education to propose regulations to further ease the burden of student loan debt.
Madison Monroe’s highly trained professionals can help borrowers determine their eligibility for this historic relief option and guide them through the process.
REPAYE caps the borrower’s monthly payment at 10 percent of their discretionary income, regardless of when they first obtained their loan. The existing PAYE program, implemented in 2013, also contained the 10-percent cap, but it only applied to loans taken out after Oct. 1, 2007.
A borrower’s monthly discretionary income equals their adjusted gross income minus the poverty level for their state of residence and family size, divided by 12, according to the Department of Education. For the current poverty level, see the Poverty Guidelines Chart, which is issued annually by the U.S. Department of Health and Human Services.
“We’re excited about REPAYE because we know it will allow many more people to get relief from student loan debt, and we’re eager to help them take advantage of the program,” said Rafael Ulloa, Madison Monroe & Associates founder. “Student loan debt is a major obstacle to growing our economy in many ways. It makes it much harder, sometimes impossible, for people to buy homes, cars and many other things they need.”
Of course, if borrowers can afford to pay more than 10 percent of their adjusted gross income, then they should, because the longer they have their debt, the more they pay in interest costs. But the 10-percent cap lets them increase their payments as their income grows once they’ve finished school and started their career.
REPAYE also is an eligible repayment plan for the Public Service Loan Forgiveness Program, which forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
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