Pay as You Earn (PAYE) Plan
What is a Pay As You Earn Plan?
PAYE is a federal student loan relief program signed into law in 2012.
The PAYE Plan is a new federal student loan repayment plan that allows some borrowers to maximize their monthly federal student loan payments at ten percent of their discretionary income. Under certain circumstances, the PAYE Plan forgives borrowers’ remaining balance after 20 years of repayment.
What student loans qualify for PAYE?
Eligible loans include Direct Subsidized, Unsubsidized Loans, and Direct Plus Loans for graduates and professionals.
Private Loans and Parent Plus Loans do not qualify for the PAYE Plan.
What type of borrowers are best suited for the PAYE Plan?
To qualify for PAYE, borrowers must demonstrate partial financial hardship and must meet two guidelines:
- Borrowers must have received a direct loan on or after Oct. 1, 2007, with no outstanding federal loans at that time.
- Borrowers must have received a direct loan disbursement on or after Oct. 1, 2011.
The PAYE Plan is also fitting for:
- Those who have low earning potential
- Those who have graduate school debt
- Those who are married and you and your spouse have incomes
Still have questions? Financial aid is available, and we’re still accepting applications.
We’re ready when you are
- Enrollment is hassle-free, and it’s easy to get started.
- Financial aid is available, and we’re still accepting applications.
- You will find comprehensive support services that will get you through college and into a great career.
- We are veteran-friendly, and we understand and respect the needs of veteran students.
- If you want to transfer in credits, Admissions can typically review your unofficial transcripts of prior learning in less than one business day.
Contact us today!
- Phone800-889-3282
- ApplicationApply Now
- Emailbdaley@goodwin.edu