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Who is eligible for the PAYE program?

To qualify for the PAYE Plan you must be a new borrower. This means that you must have had no outstanding balance on a Direct Loan or FFEL Program loan when you received a Direct Loan or FFEL Program loan on or after Oct. 1, 2007, and you must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.

Who doesnt qualify for PAYE?

The PAYE Plan is available to borrowers who have Direct Subsidized Loans, Direct Unsubsidized Loans, grad PLUS loans, and Direct Consolidation Loans. Parent PLUS loans arent eligible.

How is PAYE payment calculated?

The Pay As You Earn (PAYE) Plan is a repayment plan with monthly payments that are generally equal to 10% of your discretionary income, divided by 12, but never more than the 10-year Standard Repayment amount.

What is the minimum salary for Paye?

PAYE also known as Pay-As-You-Earn, is a tax paid to the BIR once you cross the monthly income barrier of $7500 or annual earnings of $90,000 (Effective of Jan 1st, 2023) you pay 25% of the added value. As an employer you pay employees taxes to BIR directly from their salary.

What is the minimum salary that can be taxed?

For 2024, the minimum income for Single filing status for filers under age 65 is $14,600 . If your income is below that threshold, you generally do not need to file a federal tax return. Find more information on the minimum income filing thresholds for this tax year below.