I recently finished a master’s degree and have taken up a job in Central America working in healthcare. I’m working for a small non-profit group, which has an office in the US. I make about $250/month (living is cheap down here) and my loans (all from the government) are about to come out of their grace period.

There is no way on Earth I’d be able to make the monthly payments.

So, I have one big task facing me: Applying for an Economic Hardship Deferment through AES, who is currently managing my loans. They have told me this is possible based on my circumstances.

Though… I am wondering. Would I be eligible for IBR and PSLF through this work I am doing in Central America. I will be here for a year and would love to get 12 months toward PSLF paid off before returning to the states…. On the other hand, I’m not sure making an income-based repayment on such a small salary (again, $250) is very kosher.

Thoughts???

Thanks for this website!

What’s up, Harvey?

If you’ve got federal loans you should totally be thinking IBR!  Look into IBR whether or not your job qualifies for PSLF.  There is nothing wrong with making IBR payments based upon a low salary, or no salary at all for folks who aren’t earning income.  Even if your calculated payment due is $0, a $0 payment counts as an IBR payment.  And IBR has its own forgiveness provision.  A borrower who makes payments under IBR for 25-years will have any remaining balance forgiven, and that has NOTHING to do with public service.

As for whether the job would qualify as a public service job, check out this thread for everything I know about that.

And don’t forget that ONLY federal direct loans are eligible for PSLF, so you’d have to consolidate or reconsolidate out of AES and into Federal Direct.