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2007-2010 Consolidated Loans Under IBR.  Willing to take 2013 loan.  Any way to become eligible for the new IBR rules?

Posted 01 January 2013 11:00 PM

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Joined 2013-01-01

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Heather,

I’ll try to keep this brief, as the title says it all.  I had student loans from 2007-2010, and I’m now under the 15% IBR and the PSLF plans.  I recently had problems with FedLoan Servicing, at which time I started looking into the new IBR plan.  The language, however, seems vague and confusing.

If I’m willing to take a small federal loan in 2013, is there any possible way to become eligible for the 10% IBR rules?

Many thanks,

Ian

P.S.  I’m a long time reader, but just joined the site.  Great job and thank you for all the insight.

Posted 03 January 2013 03:43 PM #1

Heather Administrator
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Joined 2011-03-30

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Hi, Ian.

1)  First, make sure you had no outstanding balance on a federal student loan as of Oct. 1, 2007.  Borrowers who did have a balance on a federal loan as of Oct. 1, 2007, don’t get PAYE under any circumstances no matter what they may do now.  Sorry.  I don’t make these rules.

2)  Second, you must have received a disbursement of a Direct Subsidized Loan, Direct Unsubsidized Loan, or Direct Grad PLUS Loan on or after Oct. 1, 2011, or you must have received a Direct Consolidation Loan based on an application that was received on or after Oct. 1, 2011.  So yes, a Direct loan borrowed now can count for that second prong (unless it is a consolidation loan that includes a loan owed on or before Oct. 1, 2007).

Later,
Heather

     

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