PSLF $0 Payments: For Real?

Short answer, yes! Many times, borrowers are confused as to whether $0/month payments count towards PSLF. If the borrower’s income level is low enough, the income-driven repayment plan (IDR) will place the borrower in a $0/month repayment schedule. Usually borrowers are recertifying their income and become a little surprised by the $0/month figure. Borrowers with AGI below 150% of the federal poverty line will have a $0/month payment.

REMINDER: Keep in mind, you still need to be working for a qualifying employer if you want those $0/month payments to count towards PSLF.

According to the Department of Education’s FAQ’s:

If my scheduled monthly payment under an income-driven repayment plan is $0, does each month during which my payment is $0 count toward the required 120 separate, monthly payments?

Yes. Any month when your scheduled payment under an income-driven repayment plan is $0 will count toward PSLF if you also are employed full-time by a qualifying employer during that month.

Please see our other post about COVID-19 related forbearance and PSLF.

If you have any questions, let us know or contact the Department of Education or FedLoan Servicing.

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