Remember, in order for your payments to qualify for PSLF, you must be employed full-time by a qualifying employer while you attend school.
Under the Graduated Repayment Plan, payments start out lower and then gradually increase, generally every two years.
Therefore, payments made during the later portion of the repayment period under the Graduated Repayment Plan may in some cases equal or exceed the payment amount that would be required under a 10-Year Standard Repayment Plan, and these payments would count for PSLF.
You can’t receive forgiveness of a joint Direct Consolidation Loan by combining payments made when only you met the employment requirement with payments made while only your spouse met the employment requirement. Direct PLUS Loans are made to graduate or professional students and to parents of dependent undergraduate students.
For example, if only you were working for a qualifying employer when 80 payments were made and only your spouse was working for a qualifying employer when 40 payments were made, the payments cannot be combined to count as 120 qualifying payments that would make the loan eligible for PSLF. Like other Direct Loans, Direct PLUS Loans are eligible for PSLF.
Any new Direct Subsidized Loans or Direct Unsubsidized Loans you receive won’t enter repayment until the end of the six-month after you leave school.
Although you could voluntarily make payments on your new Direct Subsidized Loans and Direct Unsubsidized Loans while you are in school or during your grace period, those payments wouldn’t count toward PSLF.
If I’m repaying my Direct Loans under the PAYE or IBR Plan and my monthly payments are no longer based on my income, will my payments continue to count for PSLF? Although you’ll always initially have a payment based on your income in the PAYE and IBR plans, under certain circumstances your monthly payment under those plans may no longer be based on income.
However, your monthly payments will continue to qualify for PSLF if you remain on the Pay As You Earn or Income-Based Repayment plan. Payments made to rehabilitate a defaulted Direct Loan do not qualify for PSLF.
Depending on how much extra you pay, it’s possible that your next due date could be a month or more in the future from the date you made the extra payment amount.