Hello!  I have been researching the IBR and have applied via my servicer Mohela.  However, I am unclear about going to another plan if I no longer with to be on IBR I understand that if my payment on a standard 10 year plan is exceeded, that I will not be eligible for the IBR. 

As my husband and I each have loans that are pretty big and our incomes, though good, not matching this, I don’t see a time when I would not not qualify.  My question is, however, if I decide to go off of IBR and back on Standard plan, would it be the standard 10 year plan or would it be figured on my indebtedness?  I have a Direct consolidation loan that has subsidized and unsubsidized portions in it.  Unfortuately due to econcomy and some bad choices my loan is nearly double what it was when I consolidated due to capitalized interest.  Husband’s is the same way.  I should be able to make the standard plan payment under the terms of a 30 year loan (looking at the DOE grid for my total indebtedness and payment terms) in about two years.  My question is, will they offer that term to me, or will I be forced to go on a 10 year loan term?

Any help would be appreciated!

I actually got my answer via Mohela yesterday.  I had originally applied for the IBR, but my payment was calculated incorrectly as I didn’t check the box at the bottom of part 5 on the form to include my husband’s loans.  They told me to refax.  My payment went up from 520 on graduated to 770!!  Of course once my husband’s loans are taken into account it should go down to about 389.

But, to answer my own question above, it does put you back on the 10 year plan once you go off the IBR.  My repayment schedule (the wrong payment but the schedule is correct) shows one year at the reduced payment of 770 (soon to be 386 I hope) and then 9.5 months of a payment of about 986!  I must have been in repayment for 5 months somewhere along the way.  I am calling Mohela in the morning to see if since I have a Direct Consolidation loan if I would be given a longer term.  Either way, I am planning on austerity measures to try to pay off in 10 years, while still on IBR.  I don’t every see a time when my husband and I will make enough not to quaify for IBR unless the plan is drastically changed. 

I decided to answer this for others to read.  Just realize if you plan to go on IBRthat you can’t go on any other plan but standard 10 year once you get off it.  So basically you will need to stay on it.  They do cap the payment at what the standard 10 year is though, so at least the payment would go up indefinitely.

“Would not” go up indefinitely.  The payment is capped at what the 10 year standard payment would be when you went into the IBR plan.