I have a Direct Loan opened in 2012. I am currently repaying under IBR. I would like to switch to PAYE in the next month. If I make this switch to PAYE, will I be opting-in to the proposed new $57,000 PSLF cap?

My understanding is that the $57,000 cap would only apply to new borrowers after July 1, 2015 or old borrowers who want to opt into the new PAYE. I do not understand what the difference is between the new PAYE and the old PAYE as it relates to PSLF.

Please help.

I don’t think anyone knows at this point…. We are all waiting to hear the details. I would hope that if a cap does happen, it is only for new borrowers. I would like to switch to PAYE, but my loans were dispersed prior to 2012, so I am not eligible. It would be great if they kept PSLF intact and allowed old borrowers to switch to the new PAYE system, but we’ll have to wait and find out.