There is no maximum monthly payment under the Revised Pay As You Earn (REPAYE) plan. Your monthly payment is calculated as 10% of your discretionary income, which is the difference between your adjusted gross income and 150% of the poverty guideline for your family size and state of residence.
For example, if your discretionary income is $20,000 per year, your monthly payment would be $166.67 (10% of $20,000 divided by 12 months). If your discretionary income increases, your monthly payment will increase accordingly.
It's important to note that because there is no maximum payment under REPAYE, your monthly payment could potentially be higher than it would be under other Income-Driven Repayment (IDR) plans like Income-Based Repayment (IBR). However, REPAYE has a shorter repayment term than IBR, which means you may end up paying less in total interest over the life of the loan.
