Hi Heather. You are an absolute gem for building this site. I have done my best to research and am trying to confirm whether I have everything straight:

If someone is on IBR and pays for a number of years, then if he/she moves to PAYE all the interest accrued gets capitalized upon the switch (which I understand must be done after a month on a standard plan). My questions are:
1) The payments made over the years on IBR count towards the 20 year forgiveness under PAYE, correct?
2) I understand that interest capitalizes on the switch from IBR to PAYE and that under PAYE the interest stops capitalizing after it exceeds 10% of the principal. If the accrued interest to date under IBR exceeds 10% of principal, does that mean that upon the switch to PAYE, interest would not capitalize? Or, would the switch to PAYE make the accrued IBR interest principal, and then the 10% cap apply to the amount (principal + interest) that was moved on to PAYE?
3) Is it correct that currently all forgiven debt, be it accrued interest or principal is categorized as income?