Policymakers & Advocates

Public Service Loan Forgiveness

Policymakers & Advocates

Public Service Loan Forgiveness

Eligible Payments

You must make all payments while working full time at an eligible employer. Your 120 payments must be on time, full, and separate, as well as made after October 1, 2007, under one of the following programs. (Any combination of payments under these programs would be eligible, and the payments do not need to be consecutive.)

Income-Based Repayment (IBR)
Income-Contingent Repayment (ICR)
Pay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)
Payments equal to or greater than the Standard 10-year repayment plan

Keep in mind that the standard 10-year repayment schedule works by splitting your loan amount into 120 equal payments (or 12 payments per year for 10 years). You may not have a balance left to be forgiven if you make most of your 120 payments under the standard 10-year plan unless you make some reduced payments under IBR, ICR, PAYE, or REPAYE.

Exceptions: Peace Corps volunteers who receive a transition payment after completing their period of service and AmeriCorps volunteers who received a Segal Education Award after a year of service. Servicemembers receiving payments from a Department of Defense Student Loan Repayment program are also an exception. If you used these payments or awards to make a lump sum payment on your eligible loans, those payments may count toward PSLF in certain circumstances. The payment may be counted for up to 12 qualifying payments. The actual number will be determined by dividing your lump sum payment by your scheduled full monthly payment amount. Lump sum payments made by the Department of Defense towards eligible loans may count in certain circumstances, for up to 12 qualifying payments per year.

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