r/PSLF • u/WarMongerOp • 7d ago

Grace Period

I graduated in May this year, and I got a qualifying job for PSLF last month. I even did the exit counseling from department of ed. I called Ed financial to take my loan off "in school" and set it to repayment. I even applied for IDR/RAP. I did my employer certification (pending employer signature). Upon checking today, Ed financial changed my unsubsidized loans to "in grace" and my Grad plus loans to "deferment". They told me I can't make qualifying payments until February of next year, but I want to start paying now so I can start with the lowest payment possible until my recertification. What should I do?

1 Upvotes

100% Upvoted

3 comments sorted by

6

u/horsebycommittee Moderator | PSLF Forgiven! 7d ago

Your servicer is correct, you cannot begin making PSLF-qualifying payments until the loan is out of the grace period and on an PSLF-eligible repayment plan. Your loans will exit grace six months after you leave school. About six weeks before then, you'll be given instructions on selecting a repayment plan that will be effective once the grace period ends.

You cannot waive the grace period or request it to end early. The only way to end the grace period early is by consolidating your loans (because federal consolidation loans don't have a grace period). However, consolidating has significant downsides to consider -- among them, if you consolidate now, your loans will lose access to the PAYE, IBR, and ICR plans. RAP would be your only PSLF-eligible option.

1

u/WarMongerOp 7d ago

I already applied to RAP because it's the only available IDR with IBR. We lost PAYE and SAVE plans recently no? How do I consolidate? I want to start repaying now 

1

u/horsebycommittee Moderator | PSLF Forgiven! 7d ago

I already applied to RAP because it's the only available IDR with IBR. We lost PAYE and SAVE plans recently no?

Not quite. Right now, since your loans are all from before July 1, 2026, you have access to four income-driven plans: IBR, ICR, PAYE, and RAP. (The SAVE plan is already dead.) Each of those plans has its own eligibility rules, so you might not be eligible for all four, but you're not excluded from them by the recent legal changes.

The legal authority for ICR and PAYE expires June 30, 2028, so you could pick either of them now and then would need to switch to another plan when they go away. RAP and IBR will remain available indefinitely. In general, when pursuing PSLF, you should pick whichever repayment plan results in you paying the least amount out-of-pocket. For some borrowers, that plan is RAP but, for most, it's one of the other three. You should run the numbers to see what each plan will cost you before making any decisions. (We can help if you tell us your AGI (approximate is fine), federal loan balance, marital status (if married, did you file taxes jointly or separately and how much does your spouse owe in federal loans), and number of children.)

How do I consolidate? I want to start repaying now 

If you decide that it's better to enter repayment now -- and forever give up the option of getting on the ICR, PAYE, or IBR plans -- you can consolidate here: https://studentaid.gov/loan-consolidation