1. Summary of Repayment Plans and Forgiveness Programs
STANDARD Repayment Plan:
This repayment plan saves the client money over time because the monthly payments may be slightly
higher than payments made under other plans, but client will pay off the student loan in the shortest
time. For this reason, client will pay the least amount of interest over the life of the loan. Under this
plan, monthly payments are a fixed amount of at least $50 each month, and made for up to 25 years.
GRADUATED Repayment Plan:
If client’s income is low now, but client expects it to increase steadily over time, this plan may be right
for them. This option is especially ideal for individuals that are just starting with their career. Payments
start out low and increase every two years for a 25 year period.
INCOME BASED Repayment (IBR) Plan:
To qualify for IBR, the client must have a partial financial hardship. Under this plan, the monthly
payments are based on income and family size. The client’s payment amount may increase or decrease
each year based on the client’s income and family size (this information is automatically reviewed yearly
by the Department of Education). Once the client is initially qualified for IBR, the client may continue to
make payments under the plan even if the client no longer has a partial financial hardship. Payments are
typically lower on this plan, and the terms are calculated over a period of 25 years.
If the monthly IBR payment amount doesn’t cover the interest that accrues (accumulates) on the loans
each month, the government will pay the unpaid accrued interest for up to three consecutive years from
repayment of the loan under this plan.
If the client repays under IBR for 25 years, any remaining balance will be canceled.
PUBLIC SERVICE Forgiveness Program:
Under this program, borrowers may qualify for forgiveness of the remaining balance due on their
eligible federal student loans (Direct Loans) after they have made 120 payments under the IBR, or ICR
plan while employed full time by certain public service employers.
Organizations that meet the definition of “public service organization” for purposes of the PSLF Program
are listed below (for a directory of government agencies and departments, go to
www.usa.gov/Agencies.shtml):

2. • A government organization (including a federal, state, local, or tribal organization, agency, or
entity; a public child or family service agency; or a tribal college or university);
• A non‐profit, tax‐exempt organization under section 501(c)(3) of the Internal Revenue Code
(includes most not‐for profit private schools, colleges, and universities);
• A private, non‐profit organization (that is not a labor union or a partisan political organization)
that provides one or more of the following public services: Emergency management
• Military service
• Public safety
• Law enforcement
• Public interest law services
• Early childhood education (including licensed or regulated health care, Head Start, and state‐
funded pre‐ kindergarten)
• Public service for individuals with disabilities and the elderly
• Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full‐time
professionals engaged in health care practitioner occupations and health care support
occupations)
• Public education
• Public library services
• School library or other school‐based service
TEACHER LOAN Forgiveness Program:
To qualify for this program, client must have been employed as a full‐time teacher for five complete and
consecutive academic years, and at least one of those years must have been after the 1997–98
academic year.
Client must have been employed in an elementary or secondary school that:
• is in a school district that qualifies for funds under Title I of the Elementary and Secondary
Education Act of 1965, as amended;
• has been selected by the U.S. Department of Education based on a determination that more
than 30 percent of the school’s total enrollment is made up of children who qualify for services
provided under Title I; and
• is listed in the Annual Directory of Designated Low‐Income Schools for Teacher Cancellation
Benefits. If this directory is not available before May 1 of any year, the previous year’s directory
may be used.
If client meets these qualifications (additional prerequisites may be required, final determination of
eligibility for this program will be made by the SDE processing department during the welcome call
with the client); a portion of their outstanding student loan debt may be forgiven.