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Can anyone tell me about their experience with applying for PAYE? I submitted my application last week.

I'm trying to buy a house, however the amount of student debt is keeping me from qualifying. Since I'm in grace period until November, I cannot enroll in PAYE to show lower monthly student loan payments to Lender.

Will I automatically be in PAYE the day my grace period ends or what happens?

Yeah, you can't enter into the PAYE program until your deferment ends. I tried to start mine in law school to try and knock off a few months of actual repayment ($0 income/year = $0 owed per month), but they won't let you do that. You'll have to wait for it to start, but if you already submitted your app you're pretty much just waiting until you're approved. Should start automatically but you can always call and ask.

1styearlateral wrote:Yeah, you can't enter into the PAYE program until your deferment ends. I tried to start mine in law school to try and knock off a few months of actual repayment ($0 income/year = $0 owed per month), but they won't let you do that. You'll have to wait for it to start, but if you already submitted your app you're pretty much just waiting until you're approved. Should start automatically but you can always call and ask.

Wwhen I submitted my application, I put in $0 income because I don't start work for another two weeks. Do you think this will be a problem? I wasn't notified of anything saying I couldn't do this.... Atleast not yet

Thanks

Anonymous User wrote:

1styearlateral wrote:Yeah, you can't enter into the PAYE program until your deferment ends. I tried to start mine in law school to try and knock off a few months of actual repayment ($0 income/year = $0 owed per month), but they won't let you do that. You'll have to wait for it to start, but if you already submitted your app you're pretty much just waiting until you're approved. Should start automatically but you can always call and ask.

Wwhen I submitted my application, I put in $0 income because I don't start work for another two weeks. Do you think this will be a problem? I wasn't notified of anything saying I couldn't do this.... Atleast not yet

Thanks

Pretty sure your application will be denied. Mine was, although I don't think I had to resubmit mine (they did it for me). It's been awhile so I don't remember all the little details. All I know is you won't be able to start your PAYE program until your deferment ends.

1styearlateral wrote:

Anonymous User wrote:

1styearlateral wrote:Yeah, you can't enter into the PAYE program until your deferment ends. I tried to start mine in law school to try and knock off a few months of actual repayment ($0 income/year = $0 owed per month), but they won't let you do that. You'll have to wait for it to start, but if you already submitted your app you're pretty much just waiting until you're approved. Should start automatically but you can always call and ask.

Wwhen I submitted my application, I put in $0 income because I don't start work for another two weeks. Do you think this will be a problem? I wasn't notified of anything saying I couldn't do this.... Atleast not yet

Thanks

Pretty sure your application will be denied. Mine was, although I don't think I had to resubmit mine (they did it for me). It's been awhile so I don't remember all the little details. All I know is you won't be able to start your PAYE program until your deferment ends.

How did they resubmit for you? I'm wondering if I should call and let them know my situation or if I can go without paying any monthly payments for the next year. It seems that they would have to know I'm actually employed and how much my salary is for them to resubmit on their own .... And I don't know how they'd find this info out. Would you recommend that I call or do you think I'm in the clear ?

You have to certify your income once a year. Technically I think you're supposed to update them of major changes to your income, but there's no mechanism requiring you to do so more quickly than once a year. So you may well be good, assuming your application goes through. If they say they can't take your application until November (that's when my forbearance ended/they didn't take my application before I want to say October at the earliest?) you may have to resubmit and probably need to use current income. However, you can demonstrate income either through a paystub or through your most recent tax return. Your 2015 taxable income is probably higher than 0 (assuming you had a SA) but it will be way less than your current paystub, so just use your taxes.

Anonymous User wrote:

1styearlateral wrote:

Anonymous User wrote:

1styearlateral wrote:Yeah, you can't enter into the PAYE program until your deferment ends. I tried to start mine in law school to try and knock off a few months of actual repayment ($0 income/year = $0 owed per month), but they won't let you do that. You'll have to wait for it to start, but if you already submitted your app you're pretty much just waiting until you're approved. Should start automatically but you can always call and ask.

Wwhen I submitted my application, I put in $0 income because I don't start work for another two weeks. Do you think this will be a problem? I wasn't notified of anything saying I couldn't do this.... Atleast not yet

Thanks

Pretty sure your application will be denied. Mine was, although I don't think I had to resubmit mine (they did it for me). It's been awhile so I don't remember all the little details. All I know is you won't be able to start your PAYE program until your deferment ends.

How did they resubmit for you? I'm wondering if I should call and let them know my situation or if I can go without paying any monthly payments for the next year. It seems that they would have to know I'm actually employed and how much my salary is for them to resubmit on their own .... And I don't know how they'd find this info out. Would you recommend that I call or do you think I'm in the clear ?

Just call. It sounds like it'd be a hassle but the people who work the support line are actually very nice and informative. They can answer all your questions.

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