Anyone else not eligible for PAYE because of old loan?

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Bronx Bum
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Anyone else not eligible for PAYE because of old loan?

Postby Bronx Bum » Thu Sep 19, 2013 1:27 pm

I am not eligible because of a $5k undergrad loan that I took out before law school in Aug. 2007. I owe $190k in total. LOL.

Amazing how Congress really doesn't think this stuff through. Makes no sense why ALL of my loans aren't eligible.

Sadly, not enough people have these problems.

I just graduated law school in may and I'm making $70k and love my job but this debt is killing me. At least PAYE would have helped me one day have a family, etc. Now I feel like I lost at life.

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worldtraveler
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Re: Anyone else not eligible for PAYE because of old loan?

Postby worldtraveler » Sat Sep 21, 2013 11:28 am

I also have one 5k loan destroying my eligibility. I'm doing LRAP anyway so I'm not sure it matters too much, but the whole policy seems just designed to screw over people in their late 20s/30s who went to college after it got expensive and before they made all kinds of financial aid revisions.

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A. Nony Mouse
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Re: Anyone else not eligible for PAYE because of old loan?

Postby A. Nony Mouse » Sat Sep 21, 2013 11:31 am

It's not quite as good as PAYE, but you should all still be eligible for IBR, right?

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twenty
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Re: Anyone else not eligible for PAYE because of old loan?

Postby twenty » Sat Sep 21, 2013 12:57 pm

You should absolutely be able to qualify for IBR. And as long as you're not going to be making 130k+ any time in the near future, it's probably your best option.

Also, if you're in a public service position, your loans get forgiven 15 years earlier. If you can, find a way to make that happen.

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LegaleZy
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Re: Anyone else not eligible for PAYE because of old loan?

Postby LegaleZy » Sat Sep 21, 2013 7:25 pm

Consolidate. When you consolidate a new loan is essentially created for you, that new loan will have a disbursement date of when the consolation took place. That way you'll be eligible for PAYE.

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haus
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Re: Anyone else not eligible for PAYE because of old loan?

Postby haus » Sat Sep 21, 2013 10:49 pm

LegaleZy wrote:Consolidate. When you consolidate a new loan is essentially created for you, that new loan will have a disbursement date of when the consolation took place. That way you'll be eligible for PAYE.

I do not think that this will cut it. The wording for PAYE ask if you had outstanding loans at the arbitrary date they selected. While you could pay off or consolidate these loans, it will not alter the fact that you had a loan out on that date.

It looks like I got lucky by having paid off my UG loans a couple of years prior this date, and my grad loans came well after.

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LegaleZy
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Re: Anyone else not eligible for PAYE because of old loan?

Postby LegaleZy » Sun Sep 22, 2013 12:13 am

FFELP Loans cannot to be used with PAYE, however, Direct Loans, including consolidations can. So long as the consolidation does not pay off Parent Plus loans. If you consolidate the original disbursement date will become irrelevant, since the DOE pays off your loan a creates an entire new loan which is the sum of all your student loans. This new loan will then have a different disbursement date making PAYE a possibility.

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haus
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Re: Anyone else not eligible for PAYE because of old loan?

Postby haus » Sun Sep 22, 2013 12:21 am

studentaid.ed.gov wrote:[Regarding PAYE eligibility] You also must be a new borrower as of Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You are a new borrower if you had no outstanding balance on a Direct Loan or FFEL Program loan as of Oct. 1, 2007, or had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new loan on or after Oct. 1, 2007.

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LegaleZy
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Re: Anyone else not eligible for PAYE because of old loan?

Postby LegaleZy » Sun Sep 22, 2013 12:24 am

haus wrote:
studentaid.ed.gov wrote:[Regarding PAYE eligibility] You also must be a new borrower as of Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You are a new borrower if you had no outstanding balance on a Direct Loan or FFEL Program loan as of Oct. 1, 2007, or had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new loan on or after Oct. 1, 2007.


For the purposes of consolidation you are considered a new borrower. Your disbursement would be after those dates. you would have no outstanding balance on a loan since that loans would be paid.

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LegaleZy
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Re: Anyone else not eligible for PAYE because of old loan?

Postby LegaleZy » Sun Sep 22, 2013 12:40 am

haus wrote:
studentaid.ed.gov wrote:[Regarding PAYE eligibility] You also must be a new borrower as of Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You are a new borrower if you had no outstanding balance on a Direct Loan or FFEL Program loan as of Oct. 1, 2007, or had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new loan on or after Oct. 1, 2007.


Haus, I stand corrected. I didn't see the OP stated Agustin of 2007, however, if just 5k was disgusted before August 2007 then they can still consolidate the rest disbursed after October 2007 to become eligible for PAYE on those loans.

you have Federal Family Education Loan Program (FFELP) loans that you borrowed after 10/1/07 which are ineligible for the Paye As You Earn (PAYE) Repayment Plan. Consolidating the FFELP loans will make them eligible for the PAYE Repayment Plan.

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Bronx Bum
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Re: Anyone else not eligible for PAYE because of old loan?

Postby Bronx Bum » Mon Sep 23, 2013 11:03 am

LegaleZy wrote:
haus wrote:
studentaid.ed.gov wrote:[Regarding PAYE eligibility] You also must be a new borrower as of Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You are a new borrower if you had no outstanding balance on a Direct Loan or FFEL Program loan as of Oct. 1, 2007, or had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new loan on or after Oct. 1, 2007.


Haus, I stand corrected. I didn't see the OP stated Agustin of 2007, however, if just 5k was disgusted before August 2007 then they can still consolidate the rest disbursed after October 2007 to become eligible for PAYE on those loans.

you have Federal Family Education Loan Program (FFELP) loans that you borrowed after 10/1/07 which are ineligible for the Paye As You Earn (PAYE) Repayment Plan. Consolidating the FFELP loans will make them eligible for the PAYE Repayment Plan.


Man, no offense but you're giving everyone TERRIBLE information. YOu were corrected already and now you're wrong on your correction. If you have ANY loan before Oct. 2007, ALL of your loans are ineligible even if you pay that loan off. It's straightforward.

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Bronx Bum
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Re: Anyone else not eligible for PAYE because of old loan?

Postby Bronx Bum » Mon Sep 23, 2013 11:04 am

twentypercentmore wrote:You should absolutely be able to qualify for IBR. And as long as you're not going to be making 130k+ any time in the near future, it's probably your best option.

Also, if you're in a public service position, your loans get forgiven 15 years earlier. If you can, find a way to make that happen.



Yeah that's my point. 5% extra and 5 extra years from PAYE. Just saying how much that sucks.




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