Does deferral affect PSLF

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Anonymous User
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Does deferral affect PSLF

Postby Anonymous User » Wed Mar 04, 2015 4:45 pm

Does anyone know whether deferring your loans affects your eligibility for PSLF in any way?

For example, everyone gets 24 (36?) months of automatic deferral, right? What is to stop someone from using that deferral during 2-3 years of biglaw right after law school and saving tons of money then during that time going to DA's office or some other PSLF eligible job for 10 years?

I wouldn't be doing it to save the money. I have embarrassingly large undergraduate debt on top of my law school debt and likely the only way I can take a public interest/public service salary is if I can pay down the ugrad debt first.
Last edited by Anonymous User on Wed Mar 04, 2015 5:14 pm, edited 1 time in total.

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A. Nony Mouse
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Re: Does deferral affect PSLF

Postby A. Nony Mouse » Wed Mar 04, 2015 4:51 pm

Nothing. As far as I know you can totally do that.

Of course, I thought you only got deferral if you couldn't afford to pay, but I've never looked into it.

Anonymous User
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Re: Does deferral affect PSLF

Postby Anonymous User » Wed Mar 04, 2015 4:56 pm

I thought you only got deferral if you couldn't afford to pay, but I've never looked into it.


They have told me multiple times that you can take the deferral any time over the course of the loan and it is automatic.

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seizmaar
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Re: Does deferral affect PSLF

Postby seizmaar » Wed Mar 04, 2015 5:23 pm

the deferral time would toll your PSLF timeframe, but it wouldn't undo your overall eligibility. PLSF is tied to you making 120 payments on a selected payment plan. or at least that's my understanding.

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A. Nony Mouse
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Re: Does deferral affect PSLF

Postby A. Nony Mouse » Wed Mar 04, 2015 6:02 pm

seizmaar wrote:the deferral time would toll your PSLF timeframe, but it wouldn't undo your overall eligibility. PLSF is tied to you making 120 payments on a selected payment plan. or at least that's my understanding.

Yup, this is correct. As long as you're employed by an eligible employer and qualify for IBR or PAYE you're set for PSLF. It doesn't have to be 10 years consecutive, just 120 payments, and what you do while not legible doesn't matter.

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Re: Does deferral affect PSLF

Postby Anonymous User » Wed Mar 04, 2015 6:24 pm

But if you were to do this wouldn't it be hard to get on IBR your first year out of the firm (because they base your IBR on your previous year's income, no?)

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A. Nony Mouse
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Re: Does deferral affect PSLF

Postby A. Nony Mouse » Wed Mar 04, 2015 6:59 pm

You can show partial financial hardship (required for IBR/PAYE) one of two ways: last year's taxes, or a current pay stub. If you change jobs, you can notify the student loan people of your change in income and send a paystub to tell them "this is what I'm making now." So if you take a big salary cut you can have your payments based on your current income, not your previous.




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