What if I have an outstanding balance on a Direct Loan?
If you have an outstanding balance on a Direct Loan or FFEL program loan when you received a loan on or after Oct. 1st 2007, you will not qualify for the PAYE plan.
How do REPAYE and ICR plans work?
Under these plans, your payment is always based on your income and family size, regardless of income changes. For example, if your income increases over time, your payment may be higher than the amount you would have to pay under the 10 year Standard Repayment Plan.