What are Qualifying Monthly Payments?
- Payments made after October 1, 2007.
- On-time payments made while enrolled in a qualifying repayment plan. To make sure that you make on-time payments, it is suggested that you enroll in automatic debit with your loan servicer.
- Payments that cover the full amount due as shown on your bill.
- Payments also count when you are enrolled in one of the accepted types of deferments or forbearances.
- Qualifying payments do not need to be consecutive payments. For example, any time that you are not working for a qualifying employer, your payments will not count toward PSLF; however, they will count as a payment toward your loan balance.
- If you were enrolled in a repayment plan but not required to make a payment on your loan (like during COVID-19), payments still counted as qualifying payments for PSLF if you certified your employment during that time.
- For a limited time, some borrowers may be eligible for previous payment account adjustments.
PSLF Payment Tip: To maximize forgiveness under the PSLF program, you should repay your loans under one of the income-driven repayment plans that qualifies for PSLF. These repayment plans require smaller monthly payments, which means you’ll likely have a balance remaining (depending on the amount borrowed) after you’ve made your 120th payment.