Pay As You Earn (PAYE)

The most generous IDR plan for eligible borrowers. Cap payments at 10% of discretionary income with forgiveness after just 20 years.

10%
of discretionary income
20
years to forgiveness
2011+
new borrowers only

How PAYE Works

Pay As You Earn (PAYE) is often the best IDR option for eligible borrowers, offering the lowest payments and shortest forgiveness timeline for undergraduate loans.

10% Payment Cap

Your monthly payment is always capped at 10% of your discretionary income, never more than the 10-year standard plan amount.

20-Year Forgiveness

Any remaining loan balance is completely forgiven after 20 years of qualifying payments - the shortest timeline available.

New Borrower Only

Must be a new borrower as of October 1, 2007, and received a disbursement of a Direct Loan on or after October 1, 2011.

Interest Subsidy

Government pays 100% of unpaid interest on subsidized loans for up to 3 consecutive years if payments don't cover interest.

PAYE vs Other Plans

PAYE 10% | 20 years
$182/mo
IBR 10% | 20-25 years
$182/mo
SAVE 5-10% | 20-25 years
$91/mo
ICR 20% | 25 years
$364/mo

*Example based on $50,000 income, family size of 1

PAYE Eligibility Requirements

📅 Borrowing Timeline

  • New borrower as of October 1, 2007
  • Received Direct Loan disbursement on or after October 1, 2011
  • Must demonstrate partial financial hardship
  • Federal Direct Loan borrower only

💰 Eligible Loan Types

  • Direct Subsidized Stafford Loans
  • Direct Unsubsidized Stafford Loans
  • Direct PLUS Loans (Graduate/Professional)
  • Direct Consolidation Loans

When PAYE Makes Sense

PAYE
Monthly Payment
$156
Income:$35,000
Family Size:1
Total Paid:$37,440*
Forgiven:$12,560
Standard
Monthly Payment
$416
Loan Amount:$50,000
Interest Rate:6.8%
Total Paid:$49,950
Forgiven:$0

*Assumes income stays constant. Actual payments may vary based on income changes.

Ready to Apply for PAYE?

Don't navigate the complex application process alone. Our experts will handle everything and ensure you get the lowest possible payment.

Why Work With Our PAYE Experts?

Guaranteed Approval

We ensure your PAYE application is completed correctly the first time, avoiding delays and rejections that cost you money.

Lowest Payment Guaranteed

Our experts know exactly how to calculate and present your income to ensure you get the absolute lowest payment possible.

Fast Processing

We handle all paperwork and follow up with your loan servicer to get your application processed as quickly as possible.

Ongoing Support

We provide continued assistance with annual recertifications and any issues that arise with your PAYE plan.

Get Started Today

Speak with a PAYE specialist and get your application started in minutes.

Free Phone Consultation
Speak with an expert now
FREE
Start Application Online
Quick 5-minute form
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✅ No upfront fees • ✅ 100% satisfaction guarantee

Join Thousands of Satisfied Borrowers

$847
Average Monthly Savings
15,000+
Successful Applications
99.8%
Approval Rate

What to Expect When You Contact Us

Here's exactly how we'll help you get approved for PAYE

1

Free Eligibility Review

We'll confirm you qualify for PAYE and estimate your new payment amount.

2

Document Collection

We'll tell you exactly which documents you need and help you gather them.

3

Expert Application Preparation

Our specialists complete and submit your application for optimal results.

4

Follow-Up & Tracking

We monitor your application status and handle any servicer requests.

5

Approval & Setup

We ensure your new PAYE payment is set up correctly and on time.

6

Ongoing Support

Annual recertification reminders and continued assistance as needed.

Frequently Asked Questions