5+ Year Member
Jan 11, 2012
Pharmacy Student
I'm trying to figure out if I could be eligible for PAYE.

I have undergrad loans from 2004-2006, however they are something I can pay off easily. Fast forward, I have over 200K for pharmacy school from 2009-2014.

Now, I am aware that if I consolidate all of them into one big loan, i cannot do PAYE.

HOWEVER, if I pay my 2004-2006 loans in full, and then consolidate my med school 300K loans, it is my understanding that I should be eligible. (Is this correct?)

Per regulation below, I will **NOT** have any balance, when I consolidate now after October 2011 AFTER paying prior debt.

If you are knowledgeable on this, please clarify it for me.

Thank you for your help.


" Here is full passage from the regulations (34 CFR Parts 674, 682, and 685):

(iii) Eligible new borrower means an

individual who—

(A) Has no outstanding balance on a

Direct Loan Program Loan or a FFEL

Program loan as of October 1, 2007, or

who has no outstanding balance on such

a loan on the date he or she receives a

new loan after October 1, 2007; and

(B)(1) Receives a disbursement of a

Direct Subsidized Loan, Direct

Unsubsidized Loan, or student Direct

PLUS Loan on or after October 1, 2011;


10+ Year Member
Dec 14, 2006
Don't ever wait on the government for anything! Go refi with someone like First Republic Bank, DRB, SoFi, Common Bond, etc for 2.75% for 5-10 years and get those loans paid off ASAP.