I’m curious about the difference between PAYE, IBR, and PSLF…
I began taking out GRAD Plus Direct Loans for pre-med grad school in 2006, and then in 2010 entered medical school (still paid for by GRAD Plus Direct Loans). Since my debt load from these two experiences is enormous, I always intended to pursue a PSLF-eligible career for 10-yr forgiveness, with the 25-yr non-public service option as emergency backup. According to my understanding, the new PAYE is similar to IBR - except it allows for payments at 10% of AGI instead of 15%, and a 20-yr forgiveness instead of 25-yr. If so, why is there a cut-off of 2007 for borrowers? And am I correct that I am ineligible for this option to manage all my debt by having taken out my first Direct Loan one year prior to this date, or are the loans taken after 2007 somehow eligible? Thank you for any clarification.

Hello Jski,
  Thanks for your inquiry and sorry for not replying sooner.  My name is James and I am Heather’s Communications Director (and husband).  As you can imagine, spring is Heather’s busiest travel season as most law schools, medical schools, and veterinary schools tend to book her for presentations and discussions that particular semester.  That said, I will try to do my best to answer your questions as I have worked very closely with Heather on these issues for the past couple of years.  You are correct that you are unfortunately not eligible for PAYE due to your having had an outstanding loan prior to October 2007.  PAYE is a great option for many people, but the deadlines are not waiver-able and because you had a loan prior to Oct 2007, all of your subsequent loans are ineligible as well.  Sorry to be the bearer of bad news in that regard.  However, PSLF and IBR are very good programs as well that you should consider. 

To learn more about the differences between the programs, please check out these links:
http://askheatherjarvis.com/forums/viewthread/215/
http://askheatherjarvis.com/blog/sorting-out-the-income-driven-repayment-options
http://studentaid.ed.gov/repay-loans
http://studentaid.ed.gov/repay-loans/understand/plans

Hope this helps…

Best,
James Jarvis
Communications Director
Heather Jarvis, Student Loan Expert LLC