Pay As You Earn (PAYE) is similar to Income-Based Repayment in that it isn’t a typical forgiveness plan.Generally 10 percent of your discretionary income, but never more than the 10-year Standard Repayment Plan amount
Your Pay As You Earn payments must be less than what they would be under the 10-year standard repayment plan.
You must make consistent payments under the program for 20 years in order to be considered for loan forgiveness. Your payments will be based on your income and family size. In order to qualify for the program, you need to be a new borrower as of Oct. 1, 2007, with a direct loan disbursement after Oct. 1, 2011.