If a debtor is struggling with the burden of loan repayment, I would recommend looking into the Pay as You Earn (PAYE) loan repayment plan, said University of Virginia professor Margaret Montague. Under PAYE, a debtor will either pay 10% of his/her discretionary income or what he/she would have paid under the Standard Repayment Plan. After 20 years of on-time payments, the remaining balance on the loan is forgiven. The amount forgiven is considered taxable income.