Hello,

I’m a first timer on your site. Thank you for creating this service.

I’m a Financial Planner with a client considering IBR. She has a relatively low total loan amount and, in my view, pretty low interest rates on almost all of her accounts.  However, she is just out of school and struggling to make payments nonetheless.

My only concern with getting behind IBR for her is the possibility of the existing interest rates changing.  If by renegotiating to IBR, her rates can increase, I would encourage her to get a second job first. 

I’ve searched high and low and can’t see anything that indicates the originally stated rate can change, but am looking for confirmation.  I’d be grateful if you can provide that.

Regardless, thank you for your time.

Truly,

Brendan Walsh

The only way I can see them increasing is if your client is getting some kind of discount for being on the payment plan that she is on currently. That discount may no longer be available if she switches to IBR. That being said, changing repayment plans does not alter the interest rate on the loan. Consolidating does.