IBR while in HPSP

[isittoolate]

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I am not sure if this is the appropriate place to ask this question, but I was wondering if anyone has any experience with this...but I am trying to figure out if I would be eligible to start IBR while still in school.

I am currently on 3 year HPSP, but due to undergrad loans and first year of dental school plus interest, I have at and watched my loan debt increase to about 150k. According to everything I have found at this website,
the AF is considered "public service:"
https://studentaid.ed.gov/repay-loans/understand/plans/income-driven
https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/public-service

The benefit of the Public Service Loan Forgiveness is that it is a program under IBR that only requires 15% of annual income for 10 years. I am trying to figure out if I can qualify for PSLF while still in school- therefore starting my payback 2 years earlier and with a significantly reduced income for the first two years. Does anyone know if this is possible? The one problem I see is if it is considered "full time" as it states that full time is considered 30 hours per week. Does anyone have any insight?

 

[USArmyHPSP]

The real flaw in your logic is that unless you are flipping burgers or something you do not have any income other than when on ADT. The stipend is not pay. The stipend is an edcuational scholarhsip benefit.

While I have posted this in the past, it's worth it again. The tax on the stipend is covered under the Financial Management Regulation, Vol 7A, Chapter 62. It outlines in paragraph 620203 that Federal Income Tax Withholding will be enforced. However, Federal Insurance Contributions Act (Social Security tax) will not be withheld. This makes stipend a part of the scholarship just like the tuition, and not a wage which is essentiallly pay for some sort of service to an employer.

All that said, I do believe that once you access onto active duty, you are eligible for PSLF. You may want to consider posting your question in the Financial Aide Forum, or do a key word search there.

 

[chompsss]

@isittoolate

For the record, it looks as though years spent in dental school do NOT count for PSLF even if you're paying on a qualified plan and don't put the loans in in-school or deferred status. Not even for HSCP (which is "Active Duty" during dental school), so definitely not for HPSP (not on active duty in dental school).

In this attached document (Public Service Loan Forgiveness Employment Certification Form), on the third page, left column, next to Military Service, it says that while "Active Duty" counts, it specifically says, "...but does not include active duty for training or attendance at a service school."

This only brings to light another question, however: would qualifying payments made while in residency (say, a 2-year AEGD in the Navy), count? Or, would they not count? <--this also depends on how you're classified by the military during that time. Does anybody know how you're classified when in residency?

https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf

 

[paperbackreider]

Just clarifying on the attachment: on page 3, under section 6: definitions, next to "military service," that active duty for training language does not appear anymore. Did they update the form and, if so, is the Act amended to include time in training?

https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf

 

[vellnueve]

HPSP time in school does not count as service towards PSLF, period. HSCP should as it is duty under instruction, not ADT. ADT specifically refers to when a reservist is activated for their routine training time.

Only regular active duty service time or mobilized reserve time count.