I have a very small student loan early in 2007 that disqualifies me from “new borrower status”, but the majority of my loans are from after that. Can I consolidate in order to qualify for PAYE?

I had the same question myself, but no, unfortunately you cannot:

This is what U.S. Department of Education determined in (on page 50 of) its Final Rules (http://www.gpo.gov/fdsys/pkg/FR-2012-11-01/pdf/2012-26348.pdf) for PAYE that they issued in November 2012 (emphasis in bold is mine):

“(iii) Eligible new borrower means an individual who—

(A) Has no outstanding balance on a Direct Loan Program Loan or a FFEL Program loan as of October 1, 2007, or who has no outstanding balance on such a loan on the date he or she receives a new loan after October 1, 2007; and

(B)(1) Receives a disbursement of a Direct Subsidized Loan, Direct Unsubsidized Loan, or student Direct PLUS Loan on or after October 1, 2011; or (2) Receives a Direct Consolidation Loan based on an application received on or after October 1, 2011, except that a borrower is not considered an eligible new borrower if the Direct Consolidation Loan repays a loan that would otherwise make the borrower ineligible under paragraph (a)(1)(iii)(A) of this section.”

Also, see the response by Educated Risk to a similar question in the comments of this Educated Risk blog post: http://educatedrisk.org/analysis/pay-you-earn-paye-program