Based on statement below form the U.S. Department of Education website FAQ, I need your input.

Generally, payments or periods of economic hardship deferment before July 1, 2009 (the date IBR first became available) do not count toward the 25-year period necessary for forgiveness of any remaining loan balance under IBR.
‘’ However, if you made payments under the Direct Loan Program’s Income Contingent Repayment (ICR) Plan at any time before entering IBR, the 25-year period would begin on the date you began making payments under ICR. [January 5, 2010’‘

Here is my experience so far.

  There is one question I have about reducing the year/months of repayment, particularly the 25 year repayment start date as it pertains to older borrowers who at some point in time paid under the Income Contingent plan prior to July 1st of 2009.

  I paid under the ICR with Direct Loan from 1999 to 2004.  My loans were all taken out in the 1980’s. All these loans were under CityBank and all were consolidated in 1991 with CityBank. After bankruptcy in 1998, my loans were give to Direct loans from 1999 to 2004, which was paid under ICR. Chase serviced my loans under a Standard plan from 2004 to 2010. In 2010 ACS started servicing the loan.

  I spoke with Direct Loans about IBR and was informed they could not take over my loan and honor earlier repayment schedule from 1999, and I would be paying 25 years. Direct maintains only my current loan servicer could count the earlier ICR payments from 1999.

Is this true? Do I have to stay with ACS?

    One more concern and confusion came to me when I spoke with National student loan agency to obtain my history of loans. They informed me my loan has been consolidated three times. I consolidated once in 1991. How the other two consolidations happen was without my awareness. My understanding was I could only consolidate them once.

How does all effect my situation? Can I take advantage of reducing the number of years I pay or will I have to pay 25 years?

I have not missed a payment is 14 years, and I am not in default.

and there’s more

I just got off the phone with ACS.  I was told they will not honor the above conditions that would allow me to reduce the repayment years starting in 1999 when I paid under the ICR with Direct Loan. They said that each lender makes their on rules and conditions for these loans, and they have choose not to offer this benfit.

So what is the deal?

Is this optional or not?

If   you cannot answer these questions could you please refer me to somebody that could help me understand the laws and regulations of student loans so I know my rights before I sign on the dotted line.

I’ve been told so many different things by so many different agencies that are conflicting I don’t know who to believe anymore .

ACS on my very first phone call I made on this journey told me I was ineligible for that IBR because I consolidated my loans, and I found out that was not true, so I am having trust issues now.  Who and what to believe.

Thanks
Rc

I’m sorry to hear you are facing this situation.  Although servicers have some flexibility in the way they service loans, there are also regulations that they are subject to.  They do not get to decide whether they offer the forgiveness.  Here are IBR regulations: http://askheatherjarvis.com/uploads/images/CFR-2010-title34-vol3-sec685-221.pdf.  Take a look at page 988 at the bottom of the first column for information about when ICR payments (and other periods) can count.  You’ll need to get to the bottom of the consolidation question as well, because when consolidation happens, the underlying loans are repaid, and the payments made on the underlying loans don’t count anymore.

Start with going through these steps to see if you can get clear on your loan history: http://askheatherjarvis.com/blog/where-are-my-student-loans

Also consider contacting the student loan ombudsman’s office with information about the difficulty you’ve had getting correct information: http://www.ombudsman.ed.gov/

Thank you Heather for answering my questions. 

Your links are not working on my computer, but the I found the page 988 you mentioned under the student loan law section on your website.

You said:
“You’ll need to get to the bottom of the consolidation question as well, because when consolidation happens, the underlying loans are repaid, and the payments made on the underlying loans don’t count anymore. ”  ( hope you mean “don’t count anymore’’ toward early payment not that I am not eligible for IBR )

Question:  I should I apply for the IBR now or wait until I have all my question answered?

I know the history of my loans.

        All my loans were taken out in the 1980’s with CityBank and all were consolidated by me in 1991 with CityBank. After default and bankruptcy in the mid-1990’s,  my loans were consolidated with Direct loans from 1999 to 2004, which was paid under ICR.  The third consolidation in 2004 was with Chase bank under the a 25 year Standard payment plan.  My loan stayed with Chase 2004 thru 2010 when in 2010 Chase sold my loans to ACS, which just happen without my request or awareness.  All loans are FFEL loans.

      I consolidated once in 1991 and had no idea when I changed my loan types in 1999 and 2004 that was consider reconsolidating.

      I have paid on my loans without being late or missing a payment since 1999. I have worked the same job the pass 13 years. The $400 a month payment is difficult on our family salary. The payment is taking all of my extra money, robbing me of adequately preparing myself for retirement, and making me hesitant to deal with my health issues.  I have Hep-C and cirrhosis. And no, I don’t have a history of abusing drugs or alcohol. 

      I am in my mid-50s and have 17 years left on my payment. I will be 72 years old when my loan is payed off.  I borrowed 34000 total, but after default and bankruptcy in the 1990s, my principle shot up to 490000. I have paid faithfully since 1999,  and I still owe 390000 principle not counting interest.

      I have worked all my life, I have nothing fancy, extravagant, don’t take vacations, and drive an old 1999 car. I am married, and have one child.

      I am about ready to give up on any one giving a definitive answer I can trust.  This is a big convoluted mess trying understand this stuff or getting anyone on the phone who can ask a set of questions to solve the puzzle.

    I will probably not work past 66, which is 11 years,  providing my health holds up.  At retirement time my income will be so low that under the IBR, if I have any payment, it will be so small it won’t hardly matter anyway.

Anyway sorry for rambling but these student loan have turned me into an indenture servant to the bankers.  I took out the loans, and I believe strongly, I should pay the money back but under reasonable circumstance and not circumstance that feel like legalized extortion.

Thanks and keep looking out for the over optimistic unsuspecting young folks who get caught up with these loans.

rico