Hi, my husband was on SAVE and, like everyone, is trying to figure out his new repayment plan. We spoke to his servicer (Aidvantage) and they said he is ineligible for PAYE. I'm trying to understand if that's right and would really appreciate the help.
He has one single FFELP loan dispersed 5/6/2010 (college). All his other loans are direct loans dispersed beginning 10/15/2010 (college) and intermittently until the last loan on 10/15/2021 (graduate school).
The agent said he was disqualified from PAYE based on the FFELP loan, but I see online the qualifications for PAYE are:
- You must have had no outstanding balance on a William D. Ford Federal Direct Loan Program loan (Direct Loan) or Federal Family Education Loan (FFEL) Program loan when you received a Direct Loan or FFEL Program loan on or after Oct. 1, 2007.
- His loan was disbursed in 2010, at which point he had a $0 balance because that was his first loan.
- You must have received (a) a disbursement of a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a Direct PLUS Loan for students on or after Oct. 1, 2011; or (b) a Direct Consolidation Loan based on an application that was received on or after Oct. 1, 2011.
- He received numerous disbursements of direct subsidized loans after 2011.
Am I missing a requirement here to be eligible for PAYE? Thanks so much in advance, this is all so crappy for all the SAVE people. I'm thanking my lucky stars I finally met my PSLF.
Posted by kafkalover
1 Comment
The FFELP loan isn’t eligible for PAYE but the Direct Loans are. But he also needs to have a partial financial hardship for PAYE.