How do I know if I can use PAYE?

Pay as You Earn (PAYE) is Borrower AND Loan-type specific (nslds.ed.gov)

  • You must first meet the PAYE "new borrower" requirements in order to qualify:

    Did you receive any Direct or FFEL program loans prior to October 1, 2007?
    • Yes - Did you pay those off before you received a new loan after October 1, 2007?
      • Yes -- You might qualify for PAYE...But your loans may not!
      • No -- You do NOT qualify for PAYE
    • No - Did you receive a Direct loan after October 1, 2007, and at least one after October 1, 2011?
      • Yes -- You qualify for PAYE!
      • No -- You do NOT qualify for PAYE...But you might if you apply for a Direct Consolidation loan
  • Certain non-Direct Loan types can be repaid using PAYE if you consolidate them into a Federal Direct Consolidation Loan
    • Examples of loans that commonly meet this criteria for veterinarians include:
      • Federal Family Education Loans (FFEL),
      • Health Professions Student Loans (HPSL),
      • Perkins, or
      • Loans for Disadvantaged Students (LDS):
    • You can consolidate a federal loan that has already been consolidated
    • You have to include at least one Direct loan to consolidate HPSL, Perkins or LDS loan types.
  • You can begin the Federal Direct Consolidation process at studentloans.gov

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