1. INCOME-DRIVEN REPAYMENT PLANS AND PUBLIC SERVICE LOAN FORGIVENESS
Clemente LaPietra and Thomas Kokis

2. THE INCOME-DRIVEN REPAYMENT PLANS
REPAYE – Revised Pay As You Earn
PAYE – Pay As You Earn
IBR – Income Based Repayment
ICR - Income Contingent Repayment

3. EXAMPLES OF MONTHLY PAYMENTS
Borrower A
Single parent with two children
Loan Amount $51,000
Gross Income $45,000
Standard Monthly Payment $529
IDR Monthly Payments
REPAYE $172-$331
PAYE $172-$331
IBR $258-$496
ICR $409-$459

4. EXAMPLES OF MONTHLY PAYMENTS
Borrower B
Single, no dependents
Loan Amount $31,000
Gross Income $35,000
Standard Monthly Payment $323
IDR Monthly Payments
REPAYE $141-$266
PAYE $141-$266
IBR $141-$266
ICR $223-$247

5. KEY ITEMS TO REMEMBER Recertify annually.
Count household size accurately
Dependent Children
Persons borrower provides at least half of their support.
Online application/recertification is preferable at
Retrieve tax return using IRS retrieval tool for accuracy.

6. PUBLIC SERVICE LOAN FORGIVENESS
Eligible Employers
Public sector
Government organizations: Federal, State, Municipal, County, Courts etc.
Non profit 501(c)(3)
Other not-for-profit organizations that provide specific qualifying services

7. ELIGIBLE LOANS Eligible Loans
Direct Subsidized and Unsubsidized Stafford Loans
Graduate PLUS
Parent PLUS loans must be consolidated to become eligible - only eligible for ICR plan

8. INELIGIBLE LOANS Ineligible Loans
FFELP Loans (unless Consolidated into a DL)
PUT FFELP Loans (unless Consolidated into a DL)
Perkins Loans
Parent PLUS Loans (unless Consolidated into a DL- ICR only)

9. APPLICATION AND EMPLOYMENT VERIFICATION
Borrower submits completed Employment Certification Form to Fedloan Servicing.
Fedloan determines eligibility of loans and employer.
Student’s Federally held loans, that are not already with Fedloan are transferred to Fedloan.
Fedloan is the sole servicer designated by ED to process and service PSLF applications.

10. COUNTING ELIGIBLE PAYMENTS
Borrower must make 120 separate monthly on-time payments defined as payments made within 15 days of due date.
Multiple partial payments do count but all must be paid within 15 days of due date.
Payments made when not required do not count.

11. COUNTING ELIGIBLE PAYMENTS
Lump sum payments count as one payment with these exceptions:
AmeriCorps, Peace Corps and Department of Defense borrowers.

12. QUALIFYING EMPLOYMENT
Full-time Employment
30 hours per week
As defined by the employer
Multiple qualifying part-time jobs may count as full-time based on above definition.
Worship services or time spent proselytizing do not count.

13. EXAMPLES OF FORGIVEN LOAN BALANCES
Recall Borrower A
Loan balance at repayment $51,000
Amount paid in 10 years $29,475
Amount forgiven $43,516
Borrower B
Loan balance at repayment $31,000
Amount paid in 10 Years $23,879
Amount forgiven $19,609

14. BEWARE OF FEE-BASED SERVICES
All application and re-certification for PSLF are available free of charge at
Be wary of companies that promise to wipe out loans for a large fee paid to them upfront or over-time.
Do your research and confirm with your school or student loan servicer before you sign a contract with a private loan servicing company.

15. PSLF IN THE NEWS
This October is the earliest borrowers will become eligible to apply for Public Service Loan Forgiveness.
Only eligible payments made after October 1, 2007 on eligible loans count .
Employment Certification Form must be in place for each qualifying employer but employment could also be reported retroactively.
Forgiveness is not automatic after making 120 qualifying payments. Borrower must complete PSLF form, which is under development, to be considered for the benefit.
ED will review form and let borrowers know their standing.

16. GET ON YOUR FEET PROGRAM
Administered by New York State HESC
Only for Associates and Bachelor’s Degree holders
Graduates of NYS High Schools and Colleges
Work in New York State
Earn less than $50,000 annually
Must enroll within two years of graduation
Borrowers on track for PSLF will have two of the 10 years of eligible payments covered

17. GET ON YOUR FEET PROGRAM
Must be enrolled in REPAYE or PAYE prior to applying for the program.
HESC confirms Repayment Plan option on NSLDS, and not with the servicers.
Must be current on payments at time of verification, and remain current throughout the two-year forgiveness window, to remain eligible.
Loan accounts on Deferment or Forbearance are not eligible.

18. PRESENTERS Clemente LaPietra Thomas Kokis Executive Director
Office of Loan Management
Monroe College
(646)
Thomas Kokis
Director of Student Financial Literacy
Berkeley College
(212) Ext. 4560

20. QUESTIONS