What Repayment Plans Qualify for PSLF?

Your goal should be to choose a plan that offers the lowest monthly payment while preventing your interest from ballooning.

Ahead, we’ll break down which repayment plans are your golden ticket to PSLFPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer..

You may also like:

• Limited PSLF Waiver Explained
• Can You Retroactively Apply for PSLF?
• Do Parent PLUS Loans Apply for PSLF?

What Repayment Plans Qualify for PSLF?

Qualifying for Public Service Loan Forgiveness depends on enrollment in an eligible repayment plan. Below is a list of approved repayment plans:

• 10-Year Standard Repayment PlanStandard Repayment PlanThe default federal repayment plan, which spreads loan payments evenly over 10 years — or up to 30 years for consolidation loans. It usually results in the lowest total interest paid among federal plans.: Fixed payments for 10 years.
• Income-Driven RepaymentIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. Plans: Payments are based on your income and family size.

Ahead, we’ll dive into how to choose the best PSLF plan to get the lowest qualifying monthly payment amount year after year.

Do You Have to Be on an Income-Driven Repayment Plan for PSLF?

While income-driven plans are not a strict requirement for PSLF, they are often the most beneficial. Choosing one can maximize your PSLF benefits by offering lower monthly payments. This leaves a larger loan balance to be forgiven in the end. The 10-year Standard Repayment Plan also qualifies but usually doesn’t offer the same financial flexibility.

Income-Driven Repayment and PSLF

Income-Driven Repayment Plans are a group of four plans the U.S. Department of EducationU.S. Department of Education (ED)The federal agency that oversees federal student aid programs, issues regulations for federal student loans, and is the ultimate lender on Direct Loans. offers federal student loan borrowers. These plans not only make payments more affordable, but they also help meet the eligibility requirements for different loan forgiveness programs, including PSLF.

Eligible Income-Driven Repayment Plans

• Save on a Valuable Education Plan: This is the newest income-driven plan, designed to replace the Revised Pay As You EarnRevised Pay As You Earn (REPAYE)A former federal income-driven repayment plan that capped payments at 10% of discretionary income, with forgiveness after 20 or 25 years. REPAYE was replaced by the SAVE Plan in 2023. Plan (REPAYE).
• Pay As You Earn Plan (PAYEPay As You Earn (PAYE)A federal income-driven repayment plan that caps monthly payments at 10% of discretionary income and forgives remaining debt after 20 years. It is only available to borrowers who took out their first federal loans on or after October 1, 2007.): Suitable for newer loans and borrowers with a high debt-to-income ratio.
• Income-Based RepaymentIncome-Based Repayment (IBR)A federal income-driven repayment plan that caps monthly payments at 10% or 15% of discretionary income, depending on when the loans were taken out. Remaining debt is forgiven after 20 or 25 years of qualifying payments. Plan (IBR): Good for those with older loans and potentially higher incomes.
• Income Contingent Repayment Plan (ICRIncome-Contingent Repayment (ICR)The oldest federal income-driven repayment plan, with payments generally set at 20% of discretionary income or a fixed 12-year amount, whichever is lower. It is the only IDR plan available to Parent PLUS borrowers after consolidation.): The most flexible but often results in higher payments.

Related: Are Parent PLUS Loans Eligible for Income-Based Repayment?

Advantages of IDR Plans in PSLF

1. Lower Monthly Payments: IDR plans often result in lower monthly payments compared to the 10-year Standard Repayment Plan.
2. Maximized Forgiveness: Lower payments mean a larger remaining balance, which could result in more debt being forgiven under PSLF.

What is the Best Repayment Plan for PSLF?

So you want to get the most out of PSLF, right? The “best” repayment plan for you hinges on two things:

• Monthly Budget: How much can you comfortably pay each month?
• Forgiveness Goal: Are you aiming to get the maximum amount forgiven?

Top Pick: The SAVE PlanSAVE Plan (SAVE)The Saving on a Valuable Education Plan, a federal income-driven repayment plan introduced in 2023 to replace REPAYE. Its implementation has been subject to ongoing litigation, and enrolled borrowers have faced court-ordered forbearance periods.

Among the income-driven options, the SAVE Plan usually comes out on top for PSLF. Here’s why:

• Lower Monthly Payments: The income threshold is higher, so you’ll likely pay less each month.
• Interest Waiver: Extra interest? Not your problem. It gets waived.
• Spousal Income: Married but want to keep your spouse’s income out of the equation? You can.

Remember, the goal is to minimize your monthly payments to maximize the amount forgiven. That’s why the SAVE Plan often wins the race.

Does Standard Repayment Plan Qualify for PSLF?

Yes and no—details matter here. The 10-year Standard Repayment Plan is PSLF-eligible. But if you’ve consolidated your loans, the Standard Repayment Plan for Direct Consolidation Loans usually won’t qualify. Here’s why:

• Extended Timeline: This plan often stretches repayment beyond the standard 10 years.
• Non-Qualifying Payments: Payments on this plan usually won’t count toward the 120 needed for PSLF.

Related: How to Consolidate Student Loans for PSLF

Is Graduated Repayment PlanGraduated Repayment PlanA federal repayment plan where monthly payments start lower and increase roughly every two years, typically over a 10-year term. It is designed for borrowers who expect their income to rise over time. Eligible for PSLF?

No, Graduated Repayment Plans are not eligible for PSLF. While there has been some debate about forgiveness relief for these plans, as of March 2023, they remain ineligible for the PSLF program.

Does Extended Repayment PlanExtended Repayment PlanA federal repayment plan that stretches payments out up to 25 years for borrowers with more than $30,000 in Direct or FFELP loans. Monthly payments are lower than the Standard Plan, but total interest paid is higher. Qualify for PSLF?

No, payments made under the Extended Repayment Plan do not qualify for PSLF. While some sources may list this plan among others, it’s crucial to note that it is generally not a path toward Public Service Loan Forgiveness.

Can You Switch Income-Based Repayment Programs and Still Get PSLF?

Yes, you can. Switching between different income-driven repayment (IDR) plans will not disqualify you from PSLF. Your monthly payments will continue to count toward the 120 payments needed for forgiveness as long as they are made under an eligible IDR plan.

Can I Change Payment Plans for Federal Loans While on PSLF?

Yes, you can change your repayment plan at any time while pursuing PSLF. To do so, contact your loan servicerLoan ServicerThe company that manages a borrower's federal student loan account, processes payments, and handles applications for repayment plans, deferment, forbearance, and forgiveness on behalf of the U.S. Department of Education. to discuss your options and make the change. Only payments made under qualifying plans will count toward PSLF.

Does Changing the Student Loan Payment Plan Affect PSLF?

Generally, no. Switching between qualifying repayment plans rarely affects your PSLF eligibility. But be cautious of the following:

• Capitalization of Interest: When switching out of certain plans like REPAYE, any unpaid interest will capitalize, although this is irrelevant if you’re aiming for PSLF.
• Administrative Forbearance: Sometimes, your account may be placed in forbearance for a month during the switch, slightly delaying your progress toward PSLF.

Related: Does Forbearance Count Toward PSLF?

Bottom Line

Don’t forget to confirm that your qualifying employer and full-time work status align with PSLF guidelines.

Key Terms

• Eligibility Requirements: The criteria you must meet to qualify for PSLF include having a federal student loan under the Direct LoanDirect LoanA federal student loan made directly by the U.S. Department of Education under the William D. Ford Federal Direct Loan Program. Most federal student loans issued since 2010 are Direct Loans. Program and working for a qualifying employer.
• Qualifying Employer: An organization that meets the requirements set by the federal government for PSLF. This often includes government organizations, military service, and not-for-profit organizations.
• Qualifying Payments: These are payments you make within 15 days of the due date. To count, you need to be on an eligible student loan repayment plan and be working full-time for a government or non-profit.
• Monthly Payment Amount: The sum you are required to pay every month under your chosen repayment plan.
• Federal Student AidFederal Student Aid (FSA)The office within the U.S. Department of Education that manages federal grants, work-study, and student loans. It runs the FAFSA, the StudentAid.gov website, and oversees the federal loan servicers.: Financial assistance is provided by the federal government, often through unsubsidized loans, Direct PLUS loans, or Federal Perkins Loans.
• Full-time: Working at least 30 hours per week or meeting your employer’s definition of full-time employment.
• PSLF Servicer: MOHELAMOHELAThe Missouri Higher Education Loan Authority, a federal student loan servicer that currently handles accounts for borrowers in Public Service Loan Forgiveness and other federal loan portfolios. is the go-to company for handling your student loans and PSLF To kick off your application, you’ll need to send your PSLF Form their way.
• Direct Loan Program: The federal student loan program under which most new loans are originated. This program is distinct from the FFEL Program and Federal Family Education Loan
• Income-Contingent Repayment: One of the four income-driven repayment plans, often resulting in higher payments than other income-driven plans.