Public Service Loan Forgiveness Question

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Slacker
Posts: 383
Joined: Thu May 26, 2016 8:40 am

Public Service Loan Forgiveness Question

Post by Slacker » Fri Sep 01, 2017 8:23 pm

Hello,

I have federal loans which were consolidated in 2006 into a Direct Consolidation Loan.

I first became employed with the Federal Govt in 2012.

I have 4 years of military service which has been credited to my Federal Govt service giving me a service date in 2008.

I am not currently on an income based repayment plan. I have read that I need to change that if I want to qualify for the PSLF program.

Question:
Will I be able to use my Military credited service date of 2008 for PSLF purposes?

If it is known right away that the answer is no, I will not bother to change to an income based repayment plan. I still have this loan kicking around because it is at 1.625% so I'd rather invest the money that I could use to pay off the loan. I only owe about $3600 right now.

petulant
Posts: 235
Joined: Thu Sep 22, 2016 1:09 pm

Re: Public Service Loan Forgiveness Question

Post by petulant » Fri Sep 01, 2017 8:46 pm

You must make the 120 payments under IBR or other income-based plan. You will not be able to use pre-IBR payments.

TropikThunder
Posts: 618
Joined: Sun Apr 03, 2016 5:41 pm

Re: Public Service Loan Forgiveness Question

Post by TropikThunder » Fri Sep 01, 2017 9:39 pm

petulant wrote:
Fri Sep 01, 2017 8:46 pm
You must make the 120 payments under IBR or other income-based plan. You will not be able to use pre-IBR payments.
This is correct. Payments made under the standard repayment plan (or any plan other than an Income Dependent Plan such as IBR or PAYE etc) do not count towards the 120-payment requirement, even if they were made while working for a qualified employer.
What is a qualifying monthly payment?
A qualifying monthly payment is a payment that you make
  • after Oct. 1, 2007;
  • under a qualifying repayment plan;
  • for the full amount due as shown on your bill;
  • no later than 15 days after your due date; and
  • while you are employed full-time by a qualifying employer.
https://studentaid.ed.gov/sa/repay-loan ... ng-payment

MJR84
Posts: 8
Joined: Sat Sep 02, 2017 11:04 am

Re: Public Service Loan Forgiveness Question

Post by MJR84 » Mon Sep 04, 2017 8:32 am

TropikThunder wrote:
Fri Sep 01, 2017 9:39 pm
petulant wrote:
Fri Sep 01, 2017 8:46 pm
You must make the 120 payments under IBR or other income-based plan. You will not be able to use pre-IBR payments.
This is correct. Payments made under the standard repayment plan (or any plan other than an Income Dependent Plan such as IBR or PAYE etc) do not count towards the 120-payment requirement, even if they were made while working for a qualified employer.
Apologies if I'm simply misunderstanding, but I think payments made under the standard repayment plan can count toward the required 120 payments. (Here's what I'm basing this on: https://studentaid.ed.gov/sa/repay-loan ... ng-payment).

vaught
Posts: 33
Joined: Fri Aug 11, 2017 2:00 pm

Re: Public Service Loan Forgiveness Question

Post by vaught » Mon Sep 04, 2017 7:10 pm

My understanding is that only those payments made while enrolled under an income based repayment plan will count.

Using your own link find the "what is a qualifying repayment plan?" link and read. It references the standard payment plan as not counting.

MJR84
Posts: 8
Joined: Sat Sep 02, 2017 11:04 am

Re: Public Service Loan Forgiveness Question

Post by MJR84 » Mon Sep 04, 2017 8:14 pm

I see-- sorry, I somehow overlooked that OP had consolidated his loans.

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