Public Service Loan Forgiveness! Trivia Quiz

10 Questions | Total Attempts: 254

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Service Quizzes & Trivia

Instructions: The Public Service Loan Forgiveness (PSLF) is a program administered by the Department of Education. Peace Corps Volunteer service is only one piece of the puzzle. To make sure you are comfortable with the basics, CFO/VPS has designed a quiz to help you understand Volunteer service may apply for PSLF. Remember, Peace Corps is not the lender, and we do not know the specifics of everyone’s situation so it’s best to answer general questions, provide the following resources


Questions and Answers
  • 1. 
    Someone calls/emails and is interested in serving, but they say, “I have student loans, what are some options for student loan benefits?” In addition to referring them to www.peacecorps.gov/loans, how can you respond?
    • A. 

      Ask them to contact their lender to see if your federal loans are eligible for an income-driven repayment plan. Encourage them to research PSLF if that makes sense for your specific situation and refer them to https://studentaid.ed.gov/sites/default/files/peace-corps-and-loan-repayment_1.pdf and http://files.consumerfinance.gov/f/201409_cfpb_pslf_guide_peace-corps.pdf

    • B. 

      Ask them to contact their lender to see if your loans are eligible for deferment.

    • C. 

      Share information about the partial Perkins loan cancellation benefit.

    • D. 

      Let them know they can sign up to have payments made from your Readjustment Allowance once they swear in as a Volunteer (after 3 months of pre-service training). They can sign up to do this “allotment” of up to 75% of your Readjustment Allowance ($243.75 as of 10/1/14) through post. The PCV or their POA need to make sure all the information is correct and the payments are going through properly.

    • E. 

      All of the above.

  • 2. 
    All types of loans, as long as they are federal, qualify for PSLF.
    • A. 

      True. PSLF works for all federal loans.

    • B. 

      False. Only loans you have received under the Direct Loan Program are directly eligible for PSLF. Other federal loans may qualify if consolidated. You need to call FedLoan Servicing (855) 265-4038 to see if and how may you qualify.

  • 3. 
    In order to qualify for PSLF, you need to be on a qualifying repayment plan. The income-driven repayment plans are the ones that are most likely to result in an outstanding balance after you make 120 qualifying payments. It may also mean that your payment during Volunteer service could be as low as $0 per month. Which of the following is NOT a qualifying income-driven repayment plan?          
    • A. 

      Income-Based Repayment

    • B. 

      Income-Contingent Repayment

    • C. 

      Pay As You Earn

    • D. 

      All of the above are qualifying repayment plans

  • 4. 
    What would be the best way to respond if an invitee or applicant asks, “I plan on working for a private company after my service and do not expect to pursue a career in public service. Should I still sign up for PSLF?”
    • A. 

      Yes. PSLF is good for everyone.

    • B. 

      Probably not since PSLF is only for those who plan on going on to public service.

    • C. 

      None of the above

  • 5. 
    Signing up for an income-driven repayment plan for PSLF while serving as a Peace Corps Volunteer will likely mean that my payments are $0 per month.
    • A. 

      Yes, most likely.

    • B. 

      No, probably not.

  • 6. 
    It is much better to sign up for a qualifying income-driven repayment plan and send in your paperwork for PSLF to your lender at the VERY beginning of your service, than at the end, in order to get the maximum number of qualifying payments for forgiveness
    • A. 

      True. Signing up for PSLF and a qualifying repayment plan at the VERY beginning of your service could mean all 27 of your payments could count.

    • B. 

      False. It doesn’t matter when you sign up.

  • 7. 
    An RPCV asks, “I COS’ed 5 months ago. Is it too late to get some of my time as a Peace Corps Volunteer to count towards the 120 qualifying PSLF payments?”
    • A. 

      Yes, it is too late. You must sign up at the beginning or during your service.

    • B. 

      No, it is not too late. You can use a portion of your Readjustment Allowance after completing your service to make a lump-sum loan repayment for it to count towards PSLF.

  • 8. 
    All I need to sign up for PSLF is to get a document proving my earnings.
    • A. 

      True

    • B. 

      False.

  • 9. 
    Say your loan qualifies for PSLF, can you defer your loan and also sign up for an income-driven repayment plan?
    • A. 

      Yes, and you should.

    • B. 

      No, you cannot do both.

  • 10. 
    An invitee or applicant can request documentation about their earnings for proof of an income-driven repayment plan for PSLF as soon as they receive their invite to serve.
    • A. 

      True. Invitees can request paperwork directly from HQ.

    • B. 

      False. Invitees have to wait until their staging event to get proof of their service and earnings.

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