SadPharma

5+ Year Member
Jan 11, 2012
36
7
Status
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;
 

pezdispenser

10+ Year Member
Dec 14, 2006
1,531
676
Status
Pharmacist
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.