Forgiveness programs Income Based Repayment (IBR) after 25 years* Pay As You Earn (PAYE) after 20 years* Public Service Loan Forgiveness, assuming borrower meets eligibility requirements** * Forgiveness amount taxable under current law ** Forgiveness amount NOT taxable under current law

PSLF eligibility Three things must happen at the same time in order to qualify for PSLF You must: – Make 120 timely, scheduled, eligible payments (like IBR or PAYE)* – On eligible loans (only Direct Loans) – While working for eligible public service employer** * Payments do not have to be consecutive ** Many teaching hospitals qualify as eligible PSLF employers

Steps to start PSLF eligibility You do not apply now for PSLF Ensure all federal loans are Direct – Consolidate non-Direct Loans into Direct Consolidation Loan Start making IBR or PAYE payments on Direct Loans Submit Employment Certification Form* * Not required, but will help ensure eligibility is tracked by FedLoan Servicing

Some proposed changes Include spousal income in PAYE calculation regardless of tax filing status Extend PAYE forgiveness to 25 years* Eliminate Standard 10 year cap on PAYE when no more PFH** Cap PSLF forgiveness at $57,500 Changes often for “new” borrowers, but no guarantees * Borrowers with federal loan balances over $57,500 ** Partial Financial Hardship (the threshold of debt, income, and family size)