Pay As You Earn (PAYE) is a student loan repayment plan that allows borrowers to pay a percentage of their discretionary income towards their loans. This plan is designed to make repayments more manageable, especially for those with lower incomes. Payments are recalculated each year based on income and family size, ensuring that borrowers only pay what they can afford. Under PAYE, any remaining loan balance may be forgiven after 20 years of qualifying payments. This feature provides relief for borrowers who may struggle to pay off their loans in full, making it a helpful option for many students and graduates.