January 28, 2018
First off, thanks so much for providing this forum. It is a great help.
I am entering repayment on loans of $133k this year and my husband has been in repayment for 4 years with loans of about $78k. We both work for public colleges. I have delayed starting him on PSLF officially because I had a friend who signed up and when they switched her to FedLoan from her previous loan servicer, she said her income drive plan payment went up by a few hundred dollars. She isn’t the most well-versed person on these things, so it may have been because she received a salary increase after she graduated and started working full time.
My question is, do the different loan servicers calculate these income driven payments differently? Or should they all be the same? It seems to me that they should, but so much of the PSLF program is mind-numbingly complex that I wanted to inquire before officially starting the process so there would be one (potential) fewer surprise.
May 3, 2014
To answer your specific questions: The loan servicer calculations should all be the same. They are all working from the same required formulas.
In my opinion the best way to get started on PSLF is to call your loan servicer to make sure your loans are all eligible and you are on an eligible repayment plan (such as IBR, PAYE or REPAYE). Once you have done all of that, have your employer sign your employment certification form (found here: https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf ) When this form is submitted it will verify that your loans are eligible, you are on an eligible repayment plan, and you have an eligible employer… then you start working towards your 120 payments. Submitting an employer certification form on a yearly basis is usually a good way to keep track of your progress.
This article we wrote on the basics and the fine print of PSLF should help you sort out some of the complexity of the situation: https://studentloansherpa.com/public-service-student-loan-forgiveness-basics-fine-print/
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