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Forgiveness programsIncome 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

1PSLF eligibilityThree things must happen at the same time in order to qualify for PSLFYou 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

2Steps to start PSLF eligibilityYou do not apply now for PSLF Ensure all federal loans are DirectConsolidate non-Direct Loans into Direct Consolidation LoanStart making IBR or PAYE payments on Direct Loans Submit Employment Certification Form*

* Not required, but will help ensure eligibility is tracked by FedLoan Servicing

3Some proposed changesInclude spousal income in PAYE calculation regardless of tax filing statusExtend PAYE forgiveness to 25 years*Eliminate Standard 10 year cap on PAYE when no more PFH**Cap PSLF forgiveness at $57,500Changes 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)

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