Once you are employed after graduating from college, if you are earning more than $25,000 per year, you will pay 6.25% of your annual salary to EEI for ten years (with ACH Debit option). 1/12 of the annual payment will be made each month.
If you are unemployed or earning less than $25,000 per year you will pay nothing that year. If you return to graduate school and are earning less than $25,000, you will pay nothing that year. If you are at home because of family commitments and earning less than $25,000 per year, you pay nothing that year. You are allowed up to three such non-paying years. The non-payment period does not count as one of the ten years of employment.
In addition if you earn more than $ 76,800 per year you will pay nothing on the amount in excess of $76,800.
Finally if you remain employed as an educator (Public, private, parochial or charter, class room or administrator) for ten years, your tenth year payment will be waived.