Hello!

I have just spoken with Dept. of Education. I applied for consolidation with the government and for the IBR program at the same time. I was told by the agent today that I was under the standard 10 year repayment plan and I nearly had a heart attack at the amount I would need to pay (over $1,000/month). I told the agent that I had applied for the IBR program, and she replied that I would need to wait until after my graduation to apply.

The problem is that right now I only have one class to take to finish my program - which places me out of the in-school deferment that requires at least half time status. It’s possible that I will be billed the standard payment, and I asked her if I could use a hardship forbearance and pay only $150/month until my graduation. She agreed, but when I asked her if the hardship forbearance would damage my eligibility to apply for IBR post graduation she said without much assurance: “not necessarily…”

So, do I have to wait until after graduation and during the grace period to apply? Also, can I lose eligibility for IBR if I’m on a “hardship” payment plan? I’m also confused because I am technically still in school, and have not graduated - so I do not understand why I could possibly need to pay any payments at all at this time.

Thank you so much!

Ph.

I can’t think of anything that would stop you from selecting IBR right now.  The idea that you have to wait until after graduation makes no sense to me, particularly because you said you are not in deferment but instead are in a repayment status.

There isn’t anything about deferments or forbearances that affect your eligibility for IBR, but by definition a loan in deferment or forbearance is not “in repayment”.

It is true that in-school deferment is for students who are in school 1/2 time or more.

I suggest you call your loan servicer back and speak to someone else.  I’m guessing you’ll get different information.  If you aren’t sure who services your different loans, check on NSLDS.  Take a look at the “status” of your loans on NSLDS too.

Do us a favor and report back.

And please forgive my delayed response!  There was a brief period when I didn’t get the email notifications I usually get to tell me when someone has posted to the forum.  I’m sorry you had to wait so long.