What does applying for an income-driven repayment plan allow me to do?
Completing the application allows you to select an income-driven repayment plan by name or  request that your loan servicer determine what plan you qualify for. The loan servicer would then place you on the plan with the lowest monthly payment.
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.