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Below is my understanding of PSLF
Anyone who's been doing this or knows of it, please let me know how far off I am or what things I might be missing
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Currently I owe $250,000 (consolidated with NelNet) & am on the standard repayment plan which makes my monthly payments $1300
I do currently work full-time, for a non-profit organisation & plan to go into academics once certain family issues are resolved
If I understand correctly, I will have to make 120 payments of $1300 ($156,000), and hence will save a minimum of $90,000 (possibly more since the accrued interest for anything past 10 yrs is also forgiven)
Also, based on what I read, these payments do not have to be consecutive i.e. I can work for non-profit for 5 years, then work for-profit for 2-3 & then come back into non-profit & only have 5 more years of loan repayments (Very unlikely scenario obviously but just to see if I understand it correctly)
With the standard plan, my minimum payment is the same as it would be under PSLF so the only downside I can see is that I cannot pay anything on top of my minimum payment to cut the time down (i.e. 8 yrs vs 10 yrs) and that if I were to move to for-profit I would have accrued more interest since the remaining balance would be higher
Can someone let me know if I have this correct?
Thanks
Anyone who's been doing this or knows of it, please let me know how far off I am or what things I might be missing
============================================================================
Currently I owe $250,000 (consolidated with NelNet) & am on the standard repayment plan which makes my monthly payments $1300
I do currently work full-time, for a non-profit organisation & plan to go into academics once certain family issues are resolved
If I understand correctly, I will have to make 120 payments of $1300 ($156,000), and hence will save a minimum of $90,000 (possibly more since the accrued interest for anything past 10 yrs is also forgiven)
Also, based on what I read, these payments do not have to be consecutive i.e. I can work for non-profit for 5 years, then work for-profit for 2-3 & then come back into non-profit & only have 5 more years of loan repayments (Very unlikely scenario obviously but just to see if I understand it correctly)
With the standard plan, my minimum payment is the same as it would be under PSLF so the only downside I can see is that I cannot pay anything on top of my minimum payment to cut the time down (i.e. 8 yrs vs 10 yrs) and that if I were to move to for-profit I would have accrued more interest since the remaining balance would be higher
Can someone let me know if I have this correct?
Thanks
