Hi Heather,

I’ve been looking over your wonderful site for hours, but can’t find the answers to these questions.

1. I have been a teacher in a Title 1 School for the past 7 years. I began paying my student loans while working at a for-profit company for 18 months before becoming a teacher. Does that affect my eligibility for PSLF?
2. I recently applied an Americorps Education Award toward my student loan balance. Does that affect my eligibility for PSLF?
3. I recently received $5,000 in loan forgiveness for teaching English in a Title 1 School for 5 years. Does that affect my eligibility for PSLF?
4. I also have Perkins loan that will be forgiven in the next year for working in a Title 1 school. Will this affect my eligibility for PSLF?
5. Is a Stafford Loan through American Education Services an FFEL or a Federal Direct Loan?
6. How do I know if I am paying the right amount? Can I assume if I told the people at AES to give me the absolute smallest payment possible, that that is the right amount to be eligible for PSLF?

I appreciate your answers very much. It frustrates me greatly that it’s so difficult to get answers to these questions!!

Gratefully,

Jill

Hello Jill.  I apologize for not replying sooner.  My name is James and I am Heather’s Communications Director (and husband).  Spring is Heather’s busiest travel season and she has been on the road at colleges and universities across the country fairly consistently since January.  That said, as you know, PSLF is a great program that enables talented people, like you, to provide meaningful work in traditionally under-paid career fields and communities. 

As to your questions, please check out these links:
http://www.studentloanborrowerassistance.org/loan-cancellation/career-related/#PUBLICSERVICEFORGIVENESS
http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness-common-questions.pdf
http://askheatherjarvis.com/uploads/images/Five Easy Steps for PSLF v_2.pdf
http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness.pdf

Hope this helps.  I will check with Heather to see if she has any more specific answers for your questions.

Best,

James Jarvis
Communications Director
Heather Jarvis, Student Loan Expert LLC

Jill,

Thanks for your service as a teacher!

1. I have been a teacher in a Title 1 School for the past 7 years. I began paying my student loans while working at a for-profit company for 18 months before becoming a teacher. Does that affect my eligibility for PSLF?
2. I recently applied an Americorps Education Award toward my student loan balance. Does that affect my eligibility for PSLF?
3. I recently received $5,000 in loan forgiveness for teaching English in a Title 1 School for 5 years. Does that affect my eligibility for PSLF?
4. I also have Perkins loan that will be forgiven in the next year for working in a Title 1 school. Will this affect my eligibility for PSLF?
5. Is a Stafford Loan through American Education Services an FFEL or a Federal Direct Loan?
6. How do I know if I am paying the right amount? Can I assume if I told the people at AES to give me the absolute smallest payment possible, that that is the right amount to be eligible for PSLF?

1.  No.  Payments made while not in a qualifying public service position don’t count towards the 120, but work for a for profit does not disqualify a borrower.

2.  Um, no but the award is treated differently in terms of how many of the 120 payments it can count towards AND it will be taxable so therefore will influence your payment amount and total forgiveness potential.  Let me dig up some AmeriCorps specific stuff and get it to you.

3.  No, but if it becomes part of your Adjusted Gross Income it affects payments and therefore total forgiveness potential.

4.  Nope.

5.  It’s one or the other but you must look at http://nslds.ed.gov at your loan detail and ensure that the LENDER is the US Department of Education.  Only then do you know it is a Direct loan.  Any other lender and it is a FFEL loan, and NOT eligible for PSLF unless or until it is consolidated into Direct.

6. Pff!  You cannot assume that AES gives a hoot.  Review my 5 Steps to PSLF on the Tools page.  You must be in an income driven plan, federal DIRECT loans only, etc.

Yours,
Heather