Hi Heather, thanks so much for this service.  I was informed that my loan payments for the next 12 months will be $0.  I make a salary of $47,000 so I knew my payments would be relatively low but not $0.  I called them up and they said that is correct that I pay $0.  Will these “payments” count toward PSLF?  If not how can I get them to make me pay at least a small amount so that I can get credit toward my 120 payments.  Thanks!

IBR payments are based on adjusted gross income information supplied by the borrower (usually a federal tax return).  If the calculated payments due is $0, then $0 can count as a payments under IBR and for PSLF.  Borrowers do not need to send nominal funds.  Be sure to supply the updated income information every year as required.

Yours,
H

Does it make sense that a single person with my salary is only required to pay $0.  I am nervous that this is going to negatively affect me later.

Nearly identical situation here. With a similar income (about 45k), I received notice today that under IBR, my payment would be $0. Perhaps they have changed the formula used to calculate IBR payments?

This does fell like it should be filed under “too good to be true”. I was expecting to pay around $300/month starting next month and now I get to pay $0?! I’m also a bit nervous about that, but I’m not sure what the negative affects could be. If there was some sort of mistake made in the calculation, I don’t think they could ask us to retroactively pay a higher amount. The worse that could happen is that they would recalculate and start requiring a higher payment before the first year is up. For now, I’m going to count this as a “mitsvah” and go with it.

Just so I’m totally clear, am I correct that we don’t need to do anything in order to have the $0 payments count toward PSLF? Just having them listed on my account as the calculated payment is enough?

Payments of $0 can count towards PSLF, yes!  This was fought and won during the initial rule making process.  But remember, the devil is in the details—

To earn PSLF, a borrower must make 120 qualifying payments.

For any given payment to count towards the 120 payments required to earn PSLF, it must be:
• Made after October 1, 2007,
• Made under a qualifying repayment plan,
• Made while the borrower is working full-time at a qualifying public service organization,
• Received by the Direct Loan servicer no later than 15 days after the scheduled payment due date,
• A “full” payment.  Full payments are payments on a Direct Loan in an amount that equals or exceeds the monthly amount required under your Direct Loan repayment schedule;
• A “scheduled” payment.  Scheduled payments are payments made under a qualifying repayment plan after your servicer has billed you for the month’s payment.

If your loan servicer calculates that your full scheduled payment due under, for example, the income-based repayment plan is $0, then $0 payment can count towards the 120 required for PSLF, as long as you get all these other details right too.