Payment assistance.
Payment assistance. A payment subsidy available to eligible section 502 borrowers that reduces the effective interest rate of a loan (see 3550.68). Borrowers eligible for a payment subsidy receive payment assistance unless they are currently eligible for and receive interest credit. There are two methods of payment assistance. Payment assistance method 1 is found at 3550.68(c)(2). Payment assistance method 2 is found at 3550.68(c)(1).