First of all, thank you for this website! So much helpful info.

I did a federal consolidation of my 200k in student loans in June 2011. At the time, I selected ICR because IBR was not available to me. When the loan went to servicing, I was told that the ICR terms weren’t forwarded to DLSC (they had a lot of computer problems at the time). They said that the consolidation department is “really bad about sending them things” and I should reselect a payment plan.

I was told I could pick IBR instead of ICR if I wanted, and could file an in-school deferment to avoid the massive standard loan payments while they figured out my IBR app. Now, months later, I’m receiving a rejection letter that I cannot select IBR while in school. What? I did exactly as I was told, and feel like I’m just getting the runaround from these people.

What is my best course of action? My plan was to set up IBR, then go off deferment so I could have a seamless start to my affordable payments. If I go off in-school status, then file IBR, what happens if a huge payment comes due before my IBR is approved? I know I should be asking servicing these questions, but I have no confidence of receiving accurate information.

Thanks!

It’s so frustrating how hard it is to get straight answers!  When loans are in an in school deferment status, they are by definition not “in repayment,” so that’s why you are getting the run around.  You are right to be concerned that when you are out of school, payments will be due right away, because you don’t have a grace period since you have consolidated.  That said, borrowers are typically granted “administrative forbearance” while they are processing repayment plan selection paperwork.  You can ask for that.  You might also want to explain these circumstances the the ombudsman’s office, because I think it’s important for them to have information about these sort of problems.