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Repayment hell: The student loan mistake that balloons monthly payment
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New York Post
If you haven’t borrowed money yet, or if you haven’t consolidated your loans into a legacy Income-Driven Repayment plan (IDR), you only have one option: the Repayment Assistance Plan (RAP).
Both the new RAP plan and the older IDR plan cap your payment at a percentage of discretionary income.
Recertification not only keeps you in an income-based repayment plan, but it also determines how much you have to pay per month.
You could be removed from your income-driven calculation, and your servicer may automatically switch you to a fixed repayment plan.
If you have private student debt and want to lower your payments, refinancing student loans may be a useful strategy.