Credible
Get Rates
  • Refinance Student Loans
    • Compare Options
      • Best Refinancing Companies
      • Lender Reviews
      • Refinance Student Loans
      • Student Loan Consolidation
    • Learn the Basics
      • Fixed vs. Variable Rates
      • Forgiveness Programs
      • Consolidation vs Refinancing
      • Repayment Plans
      • More on Student Refi
    • How to
      • Consolidate Your Student Loans
      • Pay Off Your Student Loans
      • Lower Your Interest Rate
    • Tools
      • Current Student Loan Refi Rates
      • Refinancing Calculator
      • Repayment Calculator
      • Student Loan Score Calculator
  • Student Loans
    • Compare Options
      • Private Student Loans
      • Parent Student Loans
      • Law School Loans
      • Medical School Loans
      • Graduate Student Loans
    • Learn the Basics
      • Student Loan Limits
      • Living Expenses
      • Applying for FAFSA
      • Federal Student Loans
      • Student Loan Interest Rates
      • More on Student Loans
    • How To
      • Pay for College
      • Take Out Student Loans
      • Apply Without Cosigner
      • Apply for Student Loans
      • Pay for Grad School
    • Tools
      • Best Private Student Loans
      • Current Student Loan Rates
      • Student Loan Interest Calculator: Estimate Payments
      • Lender Reviews
  • Personal Loans
    • Compare Options
      • Best Personal Loan Lenders
      • Lender Reviews
      • Get Personal Loan Rates
    • Learn the Basics
      • How to Qualify
      • How to Get a Loan
      • Where to Get a Loan
      • Personal Loans with Cosigner
      • Pay Off Credit Card Debt
      • More on Personal Loans
    • Best for
      • Credit Card Consolidation
      • Debt Consolidation Loans
      • Home Improvement Loans
      • Good Credit
      • Fair Credit
      • Bad Credit
    • Tools
      • Current Personal Loan Rates
      • Personal Loan Calculator
  • Mortgages
    • Compare Options
      • Mortgage Refinance
      • Home Loan
      • Best Mortgage Refinance Companies
      • Best Mortgage Lenders
      • Mortgage Preapproval
      • Mortgage Payment Calculator
    • Compare Rates
      • Mortgage Refinance Rates
      • 30-Year Fixed Refinance Rates
      • 15-Year Fixed Refinance Rates
      • Home Loan Rates
      • 15-Year Fixed Mortgage Rates
      • 30-Year Fixed Mortgage Rates
    • Learn the Basics
      • How to Buy a House
      • How to Refinance Your Mortgage
      • How to Get the Best Rate
      • Cash-Out Refinancing
      • More on Home Loans and Refi
    • Pay Off Mortgage
      • Home Equity to Pay Off Debt
      • Paying Off Mortgage Early
      • Mortgage Refinance Cost
  • Insurance
    • Insurance Products
      • Insurance Products
      • Learn more about home insurance
    • Compare Options
      • Compare Insurance Quotes
      • Home Insurance Guide
    • Learn the Basics
      • What Home Insurance Covers
      • How Much Home Insurance You Need
      • Estimate Your Home Replacement Cost
      • How to Change Home Insurance
  • Company
    • About
    • Reviews
    • Blog
    • Lenders
    • Editorial Guidelines
    • FAQs
    • Press
  • Find My Rate
Advertiser Disclosure

Pay As You Earn | What to Know

PAYE can be one of the least costly federal student loan repayment plans for qualifying borrowers.

Amy Fontinelle Amy Fontinelle Edited by Jared Hughes Updated March 9, 2023

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

If you’re looking for a way to lower your federal student loan payments, the Pay As You Earn (PAYE) plan is one to consider. However, the criteria to qualify are stricter than those for some of the other repayment plans.

PAYE is best for borrowers who:

  • Took out their first federal student loan after Oct. 1, 2007
  • Have Federal Direct Loans or Direct Consolidation Loans originated after Oct. 1, 2011
  • Demonstrate partial financial hardship
  • What are the requirements for PAYE?
  • How do you apply for PAYE?
  • Pros of PAYE
  • Cons of PAYE

What are the requirements for PAYE?

The PAYE repayment plan is one of four income-driven repayment plans available to federal student loan borrowers.

Here are the basic criteria you’ll need to meet to qualify for PAYE

  • You have federal student loans. PAYE is only available to federal student loan borrowers. Private student loans aren’t eligible for PAYE
  • You took out your federal loan on or after October 1, 2011. Your loan’s disbursement date is the date that counts for this purpose
  • You had no federal student loan balance as of October 1, 2007. The Department of Education uses this date as a cutoff to define “new” borrowers for PAYE eligibility
  • You have a lot of debt relative to your income. The annual amount you would have to pay under the 10- or 30-year Standard Repayment Plan (which does not take your income into account) must be higher than what you would pay under PAYE (which does take your income into account). Federal Student Aid calls this a “partial financial hardship.”

In many ways, PAYE is similar to REPAYE, or Revised Pay As You Earn, which is another option you may want to consider. REPAYE also gives you a monthly payment of about 10% of your discretionary income. However, it doesn’t cap your monthly payment amount, so you could end up paying more than you would have under the standard 10-year repayment plan.

Good to know: PAYE is often a better choice if you qualify. You can use Federal Student Aid’s Loan Simulator to see which federal student loan repayment option works best for you.

Learn More: REPAYE: How it Works and Who it’s For

What if you don’t qualify for PAYE?

If you have excellent credit, you might also be able to save money by refinancing your student loans, but if you do that you’ll lose the opportunity to join PAYE or other federal student loan repayment plans in the future

Deferment and forbearance can be a good option for shorter-term financial hardship, as interest still accrues and you will have to get back to your regular payments after a certain period of time

If you’re considering refinancing, visit Credible to compare private student loan rates from various lenders in minutes

The student loan consolidation companies in the table below are Credible’s approved partner lenders. Because they compete for your business through Credible, you can request rates from all of them by filling out a single form. Then, you can compare your available options side-by-side. Requesting rates is free, doesn’t affect your credit score, and your personal information is not shared with our partner lenders unless you see an option you like

LenderVariable rates from (APR)Fixed rates from (APR)

brazos student loan refinance

Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.79%+ 4.4%+
  • Fixed APR: 4.4%+
  • Variable APR: 4.79%+
  • Min. credit score: 720
  • Loan amount: $10,000 to $400,000
  • Loan terms (years): 5, 7, 10, 15, 20
  • Repayment options: Military deferment, forbearance
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas
  • Customer service: Email, phone
  • Soft credit check: 720
  • Cosigner release: No
  • Loan servicer: Firstmark Services
  • Max. Undergraduate Loan Balance: $100,000 - $149,000
  • Max. Graduate Loan Balance: $200,000 - $400,000
  • Offers Parent PLUS Refinancing: Does not disclose


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
6.26%+1 5.39%+1
  • Fixed APR: 5.39%+1
  • Variable APR: 6.26%+1
  • Min. credit score: Does not disclose
  • Loan amount: $10,000 to $750,000
  • Loan terms (years): 5, 7, 10, 15, 20
  • Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay, loyalty
  • Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: After 24 to 36 months
  • Loan servicer: Firstmark Services
  • Max. Undergraduate Loan Balance: $100,000 to $149,000
  • Max. Graduate Loan Balance: Less than $150,000
  • Offers Parent PLUS Refinancing: Yes


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
5.99%+2 5.99%+2
  • Fixed APR: 5.99%+2
  • Variable APR: 5.99%+2
  • Min. credit score: Does not disclose
  • Loan amount: $5,000 to $300,000
  • Loan terms (years): 5, 7, 10, 12, 15
  • Repayment options: Military deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: All states except for ME
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: After 24 to 36 months
  • Loan servicer: College Ave Servicing LLC
  • Max. Undergraduate Loan Balance: $100,000 to $149,000
  • Max. Graduate Loan Balance: Less than $300,000
  • Offers Parent PLUS Refinancing: Yes

edvestinu student loan refinance

Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
7.41%+5 7.41%+5
  • Fixed APR: 7.41%+5
  • Variable APR: 7.39%+5
  • Min. credit score: 700
  • Loan amount: $7,500 to $200,000
  • Loan terms (years): 5, 10, 15, 20
  • Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and submit two personal references
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: Granite State Management & Resources (GSM&R)
  • Max. Undergraduate Loan Balance: $150,000 to $249,000
  • Max. Graduate Loan Balance: $150,000 to $199,000
  • Offers Parent PLUS Refinancing : Yes


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.78%+3 5.08%+3
  • Fixed APR: 5.08%+3
  • Variable APR: 4.78%+3
  • Min. credit score: 680
  • Loan amount: $10,000 to $250,000
  • Loan terms (years): 5, 7, 10, 12, 15, 20
  • Repayment options: Forbearance
  • Fees: None
  • Discounts: None
  • Eligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved school
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: No
  • Loan servicer: Mohela
  • Max. Undergraduate Loan Balance: $250,000
  • Max. Graduate Loan Balance: $250,000
  • Offers Parent PLUS Refinancing: Yes


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
6.61%+4 5.61%+4
  • Fixed APR: 5.61%+4
  • Variable APR: 6.61%+4
  • Min. credit score: 670
  • Loan amount: $5,000 to $250,000
  • Loan terms (years): 5, 10, 15, 20
  • Repayment options: Academic deferment, military deferment, forbearance
  • Fees: Late fee, returned payment fee
  • Discounts: Autopay
  • Eligibility: Must be U.S. citizen or permanent resident
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: Yes
  • Max undergraduate loan balance: $250,000
  • Max graduate loan balance: $250,000
  • Offers Parent PLUS refinancing: Yes


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.76%+ 4.49%+
  • Fixed APR: 4.49%+
  • Variable APR: 4.76%+
  • Min. credit score: 700
  • Loan amount: $5,000 to $300,000
  • Loan terms (years): 5, 7, 10, 15
  • Max. undergraduate Loan Balance: $125,000
  • Time to Fund: 10 to 30 days
  • Repayment options: Immediate repayment, forbearance
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from an eligible institution
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 12 months
  • Loan servicer: LendKey Technologies Inc.
  • Max. graduate Loan Balance: $175,000
  • Credible Review: LendKey Student Loans review
  • Offers Parent PLUS Refinancing: No


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
N/A 5.5%+
  • Fixed APR: 5.5%+
  • Variable APR: N/A
  • Min. credit score: 670
  • Loan amount: $10,000 up to the total amount
  • Loan terms (years): 7, 10, 15
  • Repayment options: Military deferment, loans discharged upon death or disability
  • Fees: None
  • Discounts: None
  • Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: No
  • Loan servicer: AES
  • Max. Undergraduate Loan Balance: No maximum
  • Max. Gradaute Loan Balance: No maximum
  • Offers Parent PLUS Refinancing: Yes


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
5.34%+ - 10.29%+ 7.06%+ - 13.72%+
  • Fixed APR: 5.34%+ - 10.29%+
  • Variable APR: 7.06%+ - 13.72%+
  • Min. credit score: 680
  • Loan amount: $5,000 to $500,000 (depending on degree)
  • Loan terms (years): 5, 7, 10, 15, 20, 25
  • Time to fund: 3 business days
  • Repayment options: Immediate, payment extension, reduced payment plan, rate reduction, term modification, extended grace period, interest only, rate and term modification, hardship forbearance, natural disaster forbearance, military forbearance, academic deferment
  • Fees: Late fee, NSF fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or have permanent residency status with a valid U.S. Social Security number
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 24 months
  • Loan servicer: Firstmark Services
  • Max. undergraduate loan balance: $125,000
  • Max. graduate loan balance: $500,000
  • Offers Parent PLUS loans: Yes
  • Min. income: $36,000


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
N/A 5.29%+
  • Fixed APR: 5.29%+
  • Variable APR: N/A
  • Min. credit score: 680
  • Loan amount: $7,500 to $250,000
  • Loan terms (years): 5, 10, 15
  • Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000
  • Customer service: Email, phone
  • Soft credit check: Does not disclose
  • Cosigner release: No
  • Loan servicer: Rhode Island Student Loan Authority
  • Max. Undergraduate Loan Balance: $150,000 - $249,000
  • Max. Graduate Loan Balance: $200,000 - $249,000
  • Offers Parent PLUS Refinancing: Yes
Compare personalized rates from multiple lenders without affecting your credit score. 100% free!

Compare Now

Trustpilot

All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures

See Also: Can’t Pay Your Student Loans? What You Need to Know

How do you apply for PAYE?

Some companies will help you apply for PAYE for a fee, but you don’t need to use their services. You can apply for PAYE yourself for free. You can also get free help from your student loan servicer. You can research who your servicer is by logging in at StudentAid.gov/login. If you have more than one servicer, you’ll need to apply for PAYE with each servicer. The Department of Education recommends that you apply online.

If you don’t want to apply online, you can print out a paper application and mail it to your loan holder. The official form says “Income-Driven Repayment (IDR) Plan Request” at the top

However you apply, you’ll need to provide the following information:

  • Name, address, Social Security number, and phone number
  • Which IDR plan you’re applying to
  • Your family size and number of dependents
  • Your marital status
  • If you’re married and have access to your spouse’s income, information about your spouse, their income, and their student loans
  • Income information, including whether you’ve recently lost income due to job loss or another reason
  • At least one document proving each source of income and dated within 90 days of your application

Pros of PAYE

Applying for PAYE might be a good choice if these benefits appeal to you:

  • Limit your monthly payment to 10% of your discretionary income, not to exceed what you would have paid under the 10-year Standard Repayment Plan.

Discretionary income is the income you have left after subtracting 150% of the poverty guideline amount, which is based on your family size and state of residence. “Income” is your adjusted gross income from your most recent federal tax return

  • For subsidized loans, get interest forgiveness for the first three years on the difference between your monthly payment and the interest that accrues
  • Become eligible for federal student loan forgiveness after 20 years
  • Switch to another income-driven repayment plan anytime, as long as you’re eligible for that plan
  • Keep the federal student loan benefits that you would lose by refinancing your student loans with a private lender
  • You’re married but don’t want your spouse’s income considered, which is an option if you file separately or don’t have access to your spouse’s income

Cons of PAYE

PAYE is not the best choice for everyone. A different repayment plan might be better for you if any of the following apply:

  • You have parent loans. These aren’t eligible for PAYE
  • You don’t want to carry student loan debt for two decades
  • You can afford the monthly payments under the Standard Repayment Plan or Graduated Repayment Plan and they will cost you less in the long run given your total debt and starting income
  • Your spouse’s income prevents you from qualifying or results in a substantially higher payment
  • You don’t meet the plan’s definition of “new borrower” or “partial financial hardship.”
  • You’re not great at following up and meeting deadlines. Failure to annually recertify your eligibility for PAYE will result in capitalized interest that will increase your loan balance
  • You need an income-driven repayment plan for loans that are not Federal Direct Loans
  • Your income is likely to increase substantially. If that happens, you could stop qualifying for PAYE. The low payments you make under many income-driven repayment plans mean that the total interest you owe can grow over time. If you leave PAYE, you could end up with a lot of capitalized interest added to your loan balance

Erik Rosenberg has contributed to the reporting of this article.

About the author
Amy Fontinelle
Amy Fontinelle

Amy Fontinelle has been a personal finance writer since 2006. Her work has been published by Forbes Advisor, Capital One, MassMutual, Prudential, Reader’s Digest, The Motley Fool, Investopedia, International Business Times, Business Insider, Bankrate, and other outlets.

Read More

Home » All » Student Loan Refinancing » Pay As You Earn | What to Know

We encourage you to provide honest and thorough feedback about your experience (not the experiences you’ve heard from other people), the good as well as the bad. But, we also want you to follow these content guidelines. The comments or responses that Credible posts under its official account are not provided, reviewed or endorsed by any of the financial institutions unless specifically stated otherwise in the response. Please keep in mind that the financial institution has no obligation to monitor any comments, questions or reviews you post and is therefore not responsible for ensuring your posts and/or questions are answered.

Leave a Reply

Your email address will not be published. Required fields are marked *

Student Loan Repayment Options


  • Federal Student Loan Repayment
  • Private Student Loan Repayment
  • Standard Repayment Plan
  • Graduated Repayment Plans

Compare Your Student Loans

  • Calculate Student Loan Score
  • Student Loan Repayment Calculator
  • Student Loan Refi Calculator

👇 CARES Act Info 👇

  • COVID-19 Student Loan Relief

Income-Driven Repayment Options

  • How to Choose Your IDR Plan
  • Income-Contingent Repayment
  • REPAYE Plan
  • PAYE Plan
  • PAYE vs. REPAYE
  • Recertify Income for IDR: Guide

Refinancing Guides

  • How to Refinance Student Loans
  • Refinancing Federal Student Loans
  • Refinancing Private Student Loans
  • Consolidating Student Loans
  • When to Refinance Student Loans
  • How to Refinance with Bad Credit

Additional Resources

  • Current Student Loan Refi Rates
  • List: Student Refi Lenders
  • List: Parent Plus Refi Lenders
  • No Degree Needed Refi Companies
  • Lender Reviews

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Related Articles

Student Loan Refinancing

PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

Student Loan Refinancing

Income Driven Repayment: Which Plan Should You Choose?

Student Loan Refinancing

Why Wouldn’t I Want to Lower My Monthly Student Loan Payments?

  • Read More
    • Refi Student Loans
    • In School Loans
    • Personal Loans
    • Mortgages
    • Insurance
  • Resources
    • Lender Reviews
    • Loan Calculators
    • Student Loan Score Calculator
    • Data Insights
    • Debt Statistics
    • Sitemap
  • Compare
    • Student Loan Refinance
      • Current Student Loan Refi Rates
    • Student Loan Consolidation
    • Private Student Loans
      • Current Student Loan Rates
    • Personal Loans
      • Current Personal Loan Rates
    • Refinance Mortgage
      • Mortgage Refinance Rates
        • 15-Year Fixed Refinance Rates
        • 30-Year Fixed Refinance Rates
    • Home Loans
      • Home Loan Rates
        • 15-Year Fixed Mortgage Rates
        • 30-Year Fixed Mortgage Rates
    • Insurance
  • Top Lenders
    • Best Student Loan Refi Companies
    • Best Private Student Loans
    • Best Personal Loans
    • Best Mortgage Lenders
    • Best Mortgage Refinance Companies
  • Company
    • About
    • Reviews
    • Blog
    • Editorial Staff
    • Editorial Guidelines
    • News
    • Press
  • Legal
    • Terms of Use
    • Privacy Policy

© 2023 Credible


Credible Operations, Inc. NMLS ID# 1681276 | NMLS Consumer Access | Licenses and Disclosures
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.