Transition to Public Interest - Loan Repayment Forum

[imanexcellentdriver]

I have been saving money during the Covid loan payment suspension instead of putting it towards loans. If I chose to transition into public interest, would I be able to go on REPAYE/PSLF and keep that savings for house/other expenses?

Having difficulty answering this question on any of the online resources, all of which focus on which loans/income levels are eligible and don't describe my situation.

[da.goat]

I have been saving money during the Covid loan payment suspension instead of putting it towards loans. If I chose to transition into public interest, would I be able to go on REPAYE/PSLF and keep that savings for house/other expenses?

Having difficulty answering this question on any of the online resources, all of which focus on which loans/income levels are eligible and don't describe my situation.

The government is not going to force you to pay up everything you've saved during the pause. Fortunately, the income based repayment options are focused on the amount of your income, not the amount of your savings. If you're planning to go on an IBR plan and/or PSLF, you're being very smart to save that money that you'd otherwise be spending on loans, since you expect your income to drop and it'll be harder to put aside future savings.

[nixy]

Fortunately, the income based repayment options are focused on the amount of your income, not the amount of your savings.

Yup, this is the key point. PSLF requires you to enter an income-based repayment plan, and your assets are irrelevant to forgiveness.