• Welcome to The Student Loan Debt Forum | The College Investor. Please login or sign up.

PAYE before PSFL?

Started by criollano, September 13, 2017, 01:14:47 pm

Previous topic - Next topic


I am currently a psych doctoral fellow at a non-for-profit hospital in CT receiving a 20k a year stipend for which I have to set my own tax deductions for my next tax report. Terrified by the fact that  I am expected to start my loan payments on 8/2018 (averaging $650 monthly) would like to take the best steps into managing this. I believe I can qualify for the PSLF forgiveness program since I plan to become a direct employee as a post doc at the same hospital next year. Should I start applying for a PAYE before submitting the PSLF application?



Yes, you need to get your repayment figured out ASAP - and PAYE is a qualifying plan for PSLF.

Remember, PSLF has three main requirements:
1. Qualifying Repayment Plan (PAYE qualifies)
2. Qualifying Employment (non profit hospital should qualify)
3. Direct Student Loans

Each of the 120 PSLF payments is counted individually, but the sooner you get the requirements met, the sooner payments can start counting towards your total.


Thanks for your reply. My loan is Direct Unsubsidized Stafford serviced through Great Lakes. I am a third party contracted intern so I'm not a direct employee of the Hospital. Am I still eligible for the forgiveness program? If I become a post doc next year (would make me a hospital employee) can I extend the due payment for one more year (2019)? What would be the next step?


A third party contractor is not eligible, an employee is.

I would suggest getting on PAYE ASAP regardless of your employment status. You can do it all yourself on StudentLoans.gov