I have always liked to make a couple of extra payments so if something comes up that might make it hard to make a payment, I’m covered. However, would these extra payments not be counted toward the 120? I know I could just put the money in the bank for a rainy day, but it works better for me to just make the payments. Thanks.

Unfortunately, you have to make 120 separate monthly payments, you can’t pay ahead of time and have it count. The one exception is for Peace Corps or AmeriCorps members, “Peace Corps volunteers receive a transition payment after completing their period of service, and AmeriCorps volunteers receive a Segal Education Award after a year of service. If you use some or all of your Peace Corps transition payment or AmeriCorps Segal Education Award to make a lump sum payment on your Direct Loans, your service will be considered PSLF-eligible service and you will receive credit for up to 12 qualifying payments for PSLF. The number of payments that you receive credit for will be determined by dividing the amount of your lump sum payment by your scheduled full monthly payment amount, not to exceed 12 payments.”

Hope that helps!

-Heather’s Helper