2 questions:
I haven’t gone to law school Yet, but I have undergraduate student loans to pay off.  First question: I am working for a non-profit through AmeriCorps VISTA currently and have my student loans on forbearance for my year of service - will this forbearance have any effect on future loan forgiveness? Am I better off paying an income-based payment for the year?  Second Question: What can or should I be doing right now to make sure I’m on the right track?

Thank You!!

A “full-time” approved AmeriCorps position is AmeriCorps service for “not less than 1,700 hours during a period of not less than 9 months and not more than 1 year.”  My understanding is that service in a full-time position in AmeriCorps VISTA, AmeriCorps State and National, or AmeriCorps NCCC meets the eligibility requirements of PSLF but that participation in an AmeriCorps VISTA Summer Associates program does NOT, even if you are putting in a lot of hours.

Borrowers in PSLF eligible full-time AmeriCorps service, will want to consider whether to take forbearance or enter IBR.  The decision will depend upon individual circumstances, including the length of time in repayment, the size of the loans, the IBR payment amount, and future employment plans. 

Some things to think about:  Interest accrues on student loans while they are in forbearance.  Interest will also accrue on loans being paid under IBR if monthly payments are too small to cover the accruing interest.  The Corporation will pay for interest accrued on qualified student loans in forbearance during AmeriCorps service out of the National Service Trust if the term is successfully completed - regardless of whether the loan is subsidized or unsubsidized and regardless of the length of the time the loan has been in repayment status.  Similarly, the Secretary of Education will pay accrued interest but only on Direct Subsidized Loans and the subsidized portion of Direct Consolidation Loans, and only for the first three years loans are in repayment under IBR.

It’s a tough call, Rachel, and you’ll need to consider all these factors to see what makes the best sense for you.