Post # 1
If I qualify for reduced student loan payment under IBR but pay a little extra each month, will that screw up my eligibility? Like will my lenders recalculate my IBR payment mid-contract if they see me consistently paying a little over each month?
Post # 3
My guess would be no. It’s based on what they think is reasonable for you to pay, not what you do pay. Could be wrong though.
Post # 4
@BeeG35: no, it will not screw up your eligibility that i know of.
Post # 5
@BeeG35: No its based on your income – not how much you pay. They won’t even track you enough to think that far into it. But be aware that they will count “household income” if your married and your payment will constantly increase if you get a raise. So if i were you I wouldn’t plan on staying on that payment plan long term. – only as long as you have to. Get on a standard payoff as soon as you can afford it. You can always switch back if you start making less money.
Post # 6
@Kate0558: excellent, thank you. it seemed like i had one lender tell me before that if i paid over my payment several times, that they would recalculate me. but ive also read that federal mandate says that there is no negative penalty for overpayment, so i was curious what other ppl had experienced.
Another question too: so when i dont qualify for IBR anymore, and I go back to standard repayment, my payments will then be calculated to squeeze into the remainder of the 10 years that i was orginally given, right? For example, if i was in IBR for 3 of my orginal 10 years of standard repayment, then my remaining balances will be calculated to be paid off in only 7 years. IS THAT CORRECT???? if so, that pisses me off because NONE OF MY LENDERS INDICATED THIS WHEN I SIGNED UP FOR IBR IN THE FIRST PLACE. i think that is something that borrowers should be made well aware of. it may resul in VERY HIGH payments that could still be unaffordable if they are squeezed into that shorter repayment period.
Post # 7
@BeeG35: No standard repayment will be recalculated to 10 years from that date. They don’t backdate it. Altleast Sallie Mae doesn’t. I’ve switched payment plans a few times to get the lowest option and standard repayment always changed and was recalculated.
Post # 8
No — every tax year they are going to use your return to calculate what you can “afford” to repay.
Post # 9
@BeeG35: No – I am in an IBR plan and I pay more than what they ask (when I can). No one is even looking at my payments (unless I miss a payment) until the next time I need to do income verification.