I found the language quoted below regarding IBR on the Direct Loan consolidation website (FAQ #21).  What the last sentence says to me is that if I’ve been paying on a Level repayment plan for the last 12 years, but now switch to IBR due to economic hardship (to have a $0 payment for now without taking deferment), those 12 years of repayment & any deferment periods should count toward the total 25 year term.  The ‘friendly’ agents at the DL help desk do not see it this way (nor were they even aware of this language).  Am I missing something, or are they??

“A borrower may change to the IBR plan at any time. After the change, the borrower’s repayment period will be a maximum of 25 years. If loans are not fully repaid after 25 years of repayment, any unpaid amount will be forgiven. The maximum 25-year repayment period may include prior periods of repayment under certain other repayment plans, and certain periods of economic hardship deferment.”

Any help deciphering this?

Borrowers who made payments under the Income Contingent Repayment plan can start the 25-year period as early as July 1, 1994.

Some other payments and periods of economic hardship deferment can start the 25-year period as early as July 1, 2009.

Check out the madness here under subsection (f): http://www.law.cornell.edu/cfr/text/34/685.221