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;
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;