Hi Heather:

I have several issues with ACS. I just came off of a Economic Hardship Forberance plan and now have to make a decision. The monthly payment I am being asked to make for the first month after coming off of Forberance is in the $3,000 range!

From what I can tell, ACS never “capitalized” my interest. That’s my first problem. In the ACS system, they do have a much lower monthly payment that makes more sense listed in my loan details section.

More importantly, I was under the impression that I had used up all of my deferments/forberances. But upon speaking with a very rude ACS rep, she informed that I was still eligible for another Economic Hardship Deferment.

I have a hard deadline of July 14th (that’s when my payment is due). I don’t know whether to apply for a deferment or do a IBR? My concern is that the information I was given was false and would therefore cause my economic hardship be denied and that would push me into the late area. My other option was to do an IBR.

Can I apply for both at the same time and instruct ACS to try for the forberance first and then if that fails, go with the IBR? Or will that confuse them?

I know there are retroactive rules that apply but I don’t know if the process of appyling for one option, and if I’m denied, applying for the second option will just take too long and put me into collections.

Of course ACS is closed on Saturday;  was trying to make some sort of decision and fax them the paperwork today.

It’s a lot of information so I would not blame you for ignoring this :)

Josh,

It’s tough for me to give individual advice from where I sit, but I’ll try to point you towards some information that might help.  Income-Based Repayment may well be a good option for you.  You can start the IBR application process going and also request a forbearance or deferment.  You want to avoid missing a payment if at all possible, so I would certainly suggest you work to get a the forbearance to hold things off while your IBR application is pending.  Also be sure to provide accurate information about your Adjusted Gross Income, so that your IBR payment isn’t based on a higher net income figure.

Let me know if you have follow up questions,
Heather