Pay As You Earn Student Loan Forgiveness (PAYE)

Trouble making student loan payments? Get on the Pay As You Earn program to make your monthly payments more affordable.

Am I eligible?

If you are a new Direct Loan borrower as of October 1, 2007, with a disbursement made after October 1, 2011, you may qualify for the Pay As You Earn Repayment Plan.

Pay As You Earn caps your maximum monthly payment at 10 percent of discretionary income, as long as that payment is less than what you would pay under the Standard Repayment Plan.

Your financial hardship will be determined based on income and family size. If you repay your loans for 20 years, then any remaining balance will be forgiven.

How much am I eligible for?

Pay As You Earn caps your student loan payments at 10 percent of your discretionary income. After 20 years of repayment, any remaining balance of your student loans could be forgiven.

Which loans qualify?

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct Plus Loans made to graduate or professional students
• Direct Consolidation loans, except those that include a Parent PLUS loan
• Subsidized or unsubsidized Stafford loans, if consolidated
• FFEL Plus loans, if consolidated
• FFEL Consolidation loans, except those that include a Parent PLUS loan
• Perkins loans, if consolidated

How do I apply?

Learn more about the Pay As You Earn Repayment program here. To apply, sign in to studentloans.gov, and complete a PAYE request form.

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