| Individuals who are unemployed, have low-income jobs, | | | | for those ten years. For purposes of the Public |
| or have very large student loan payments may qualify | | | | Service Loan Forgiveness Program, the term "public |
| for this new repayment plan. This plan says that | | | | service organization" means a job such as Emergency |
| individuals whose income is 150% less than that of the | | | | management, Military Service, Public Safety, Law |
| poverty level for their family size would not need to | | | | Enforcement, Public Education, Public Library Services, |
| make any student loan payments. If they make more | | | | etc. |
| than the 150% of the poverty level, then their student | | | | The only stipulation is that you have direct loans and |
| loan payments are only 15% of the amount of income | | | | you make the 120 monthly payments under the Direct |
| that exceeds that threshold. | | | | Loan Program. These direct loans can be a: |
| This repayment plan is available for subsidized and | | | | - Federal Direct Stafford/Ford Loans (Direct |
| unsubsidized loans, Graduate PLUS loans, and certain | | | | Subsidized Loans) |
| consolidated Stafford and Graduate PLUS loans. A | | | | - Federal Direct Unsubsidized Stafford/Ford Loans |
| Grad PLUS loan is a low, fixed interest rate student | | | | (Direct Unsubsidized Loans) |
| loan guaranteed by the U.S. Government. The loans | | | | - Federal Direct PLUS Loans (Direct PLUS Loans) - for |
| can be new or old, and they can be for any type of | | | | parents and graduate or professional students |
| education (undergrad, graduate, etc.). | | | | - Federal Direct Consolidation Loans (Direct |
| For 2009, 150% of the poverty level for a single | | | | Consolidation Loans) |
| person is $16,245. So, if you make less than that | | | | If you have FFEL (Federal Family Education Loan) then |
| amount you would qualify for zero payments. After 25 | | | | you can consolidate them into the Direct Loan |
| years, your loan is considered paid off. However, there | | | | Program to take advantage of this Public Service |
| is no income limit for this repayment program. If | | | | Loan forgiveness. If your monthly payment does not |
| anyone owes more than they earn in year they can | | | | cover the monthly interest that is accruing on your loan, |
| qualify. | | | | then the government will pay your unpaid interest for |
| If you work in public service and have qualified for this | | | | up to three consecutive years after you first enter this |
| repayment plan, your remaining balance after ten | | | | repayment program on a Direct Loan or FFEL. |
| years is cancelled if you made payments every month | | | | |