Loan Repayment Options

Income Base Repayment (IBR)

Income-Based Repayment (IBR) is a repayment plan for the major types of federal student loans that caps your required monthly payment at an amount intended to be affordable based on your income and family size.

All Stafford, PLUS, and Consolidation Loans made under either the Direct Loan or FFEL Program are eligible for repayment under IBR, EXCEPT loans that are currently in default, parent PLUS Loans (PLUS Loans that were made to parent borrowers), or Consolidation Loans that repaid parent PLUS Loans. The loans can be new or old, and for any type of education (under-graduate, graduate, professional, job training).

AAMC IBR (video Video icon )

Pay As You Earn (PAYE)

Pay As You Earn is a repayment plan for eligible Direct Loans that is designed to limit your required monthly payment to an amount that is affordable based on your income and family size.

Only loans made under the Direct Loan Program are eligible for repayment under Pay As You Earn. Eligible loans are Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans that did not repay any PLUS loans that were made to parent borrowers. Loans that are currently in default, Direct PLUS Loans made to parents, Direct Consolidation Loans that repaid PLUS loans made to parents, and Federal Family Education Loan (FFEL) Program loans are NOT eligible for repayment under Pay As You Earn.

For an official determination of your eligibility for Pay As You Earn, you must submit an application. To apply, submit an Income-Based (IBR)/Pay As You Earn/Income-Contingent (ICR) Repayment Plan Request and either

  • a copy of your most recently filed federal income tax return or
  • alternative documentation of your income, if you did not file a federal income tax return in the past two years or you've experienced a significant change in your income since you filed your most recent federal income tax return.

Are you ready to apply? Apply now online using the electronic IBR/Pay As You Earn/ICR Request.

AAMC (video Video icon )

Public Service Loan Forgiveness PSLF

The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs such as, working at many hospitals, medical schools, and other health care facilities.. Under this program, borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after they have made 120 qualifying payments on those loans while employed full time by certain public service employers.

However, the Federal Government will assess a 20% tax rate on the remaining balance before forgiveness.

AAMC PSLF (video Video icon )

PSLF Details:
studentaid.ed.gov - PSLF Details
AAMC PSLF Fact Sheet
AAMC Steps to Follow for PSLF

PSLF Calculator:
This is the only student loan repayment calculator we are able to find that provides students with an estimate of how much might be forgiven when qualifying for the Public Service Loan Forgiveness Program.

Note: It is not necessary to list all of your loans on this calculator for a quick computation. Instead, using your estimated future indebtedness and average weighted interest rate you calculated above, you can simply list this as one loan on the "organizer" page and then click on the "Medloans Calculator" tab to run the estimate.

Faculty Loan Repayment Program

Health professions faculty from disadvantaged backgrounds can receive up to a maximum of $40,000 towards repayment of their student loans in exchange for educating tomorrow's clinicians.

Individuals selected to participate in the program agree to serve on the faculty of an accredited health professions college or university for 2 years. The Government pays up to a maximum of $40,000 of the participant's student loans and provides funds to offset the tax burden.

Participants should also receive matching funds from their employing educational institution. More information is available at the HRSA web site.

Use the Repayment Estimator

Before you contact your loan servicer to discuss repayment plans, you can use our Repayment Estimator to get an early look at which plans you may be eligible for and see estimates for how much you would pay monthly and overall.

Additional Loan Forgiveness Programs

Deferment

Deferment temporarily puts your student loan payments on hold. If you meet certain criteria and you have loans through the Federal Family Education Loan Program (FFELP) or the Direct Loan program (DL), you may be eligible for a deferment.

Although several deferments are available for all federal student loan borrowers, some are only available based on loan type and oldest outstanding debt. If you're not sure if you qualify for a deferment, please contact your loan servicer.

Types of Deferments:

Graduate fellowship deferment
In-school deferment
Military deferment
PLUS loan post-enrollment deferment
Post active duty deferment
Rehabilitation training deferment
Summer bridge deferment
Unemployment deferment

To calculate how your loan payments will be affected by any type of deferment, use our deferment calculator.

Forbearance

If you don't meet the criteria for a deferment, you may qualify for forbearance.
In most cases, forbearance is granted solely at the discretion of your lender or servicer and are only offered for limited amounts of time.
Forbearances are usually reserved for cases of financial hardship or illness.
Unlike a deferment, in forbearance both subsidized and unsubsidized portions of your loan continue to accrue interest.
At the end of the forbearance period, the interest is capitalized (added to the principal balance of the loan).
Forbearance can increases the amount you owe if you choose not to pay the interest that is accruing. Contact your lender or servicer for more information.

See how forbearance could impact your loan by using our forbearance calculator. For more information, visit http://studentaid.ed.gov/repay-loans.


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Janice Maddox
Literacy Coordinator
One Stop Shop
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(901) 448-1601
Email: jmaddox9@uthsc.edu
Skype: janice.maddox3

 

Christopher Pollard
Literacy Coordinator
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Memphis, TN 38163
(901) 448-2190
Email: mbj846@uthsc.edu