$0 IDR payments count for PSLF. If you're using an income-based plan, it's using your previous years' income to determine your payment.
To maximize your PSLF benefit, repay your loans on the Income-Based Repayment (IBR) Plan, the Pay As You Earn Repayment Plan, or the Income Contingent Repayment (ICR) Plan, which are three repayment plans that qualify for PSLF. PSLF is best under IBR, Pay As You Earn, or ICR.
Each time you recertify your IDR plan with updated income and family size information, you may see your payment adjusted. If you have a $0 payment due, you do not need to pay anything that month. You will still get credit toward IDR forgiveness and the SAVE interest subsidy when you have a $0 monthly payment.
PSLF Process
Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.
To get PSLF, you have to get a total count of 120 qualifying payments. So you'll want to make sure that you're getting closer to your goal with each payment you make. Keep in mind, your payments don't have to be consecutive.
If you're pursuing loan forgiveness, any period of deferment or forbearance may not count toward your forgiveness requirements. This means you'll stop making progress toward forgiveness until you resume repayment.
If your credit card statement reflects a zero minimum payment due - even if you have a balance on your card - it is because of recent, positive credit history. A review of your recent credit history and determination to waive your minimum monthly payment allows you to skip your monthly payment for a statement cycle.
Grace Periods. One of the most common reasons you might have a $0 monthly student loan payment right now is because you're in something called your grace period. This is generally the six-month period after you leave college when no loan payments are required. It can take a minute to get used to life after college.
You don't get reported when you're in forbearance. During the on-ramp period (through Sept. 30, 2024), we automatically put your loan in a forbearance for the payments you missed. Here's what this means: Your account was no longer considered delinquent and was made current.
No. You must make payments to cover 120 separate monthly obligations. Paying extra won't make you eligible to receive PSLF sooner.
If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.
Do the months on the COVID-19 payment pause count toward my PSLF payment count? Paused payments count toward PSLF and TEPSLF as long as you meet all other qualifications. You will get credit as though you made monthly payments.
Yes. Any month when your scheduled payment under an income-driven plan is $0 will count toward Public Service Loan Forgiveness if you also are employed full-time by a qualifying employer during that month.
While in forbearance, you do not have to make monthly payments on your student loans and interest will not accrue. But time spent in this forbearance does not count towards Public Service Loan Forgiveness (PSLF) or income-driven repayment (IDR) plan forgiveness.
What will happen if my Public Service Loan Forgiveness (PSLF) application is approved? If you are approved for Public Service Loan Forgiveness, you'll be notified that the entire remaining balance of your eligible Direct Loans, including all outstanding interest and principal, will be forgiven.
IDR plans may offer lower payments because they are based on your income and family size. Payments can be as low as $0 per month, depending on your circumstances.
Forbearance Can Count Towards PSLF: Under specific conditions, forbearance periods of at least 12 consecutive months or 36 cumulative months over the life of the loan can count toward the 120 qualifying payments required for PSLF.
Income-Based Repayment (IBR)—Depending on when you first took out loans (before or on or after July 1, 2014), payments are generally 10% or 15% of the borrower's discretionary income, but never more than the 10-year Standard repayment plan amount. The remaining unpaid balance of loans is forgiven after 20 or 25 years.
If you pay the credit card minimum payment, you won't have to pay a late fee. But you'll still have to pay interest on the balance you didn't pay. And credit card interest rates run high: According to August 2024 data from the Federal Reserve, the national average credit card APR was 21.76%.
The longer you go without paying, the more likely you are to rack up fees, damage your credit score, see your interest rate soar, be harassed by debt collectors, and even face legal issues.
The charge-off remains on your credit report, but the collection account will show up on your credit report under Collections. The collection agency might sue you to get payment. Depending on the outcome of the lawsuit, the court might put a lien on your home or garnish your wages to repay what you owe.
Income-driven repayment (IDR) plans adjust your monthly student loan payments to a percentage of your discretionary income. Depending on your income and family size, you could have a payment as low as $0. In this case, you can pay nothing on your student loans without falling into delinquency or default.
The PSLF Program forgives the remaining balance on your Direct Loan after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
If your federal student loans are forgiven, you could get a refund, and you might see your credit score dip.