Educational Resources and Training - For Student Loan Borrowers & The People Who Love Them
You are here: Home :: Forum Home :: Have a question for Heather? Post it here. :: Income-Based Repayment :: Thread
Will switching from IBR to “PAYE2” restart the repayment clock?
My wife has been in repayment under IBR for two years, and is considering switching to PAYE when she becomes eligible. Will she receive credit for two years of repayment, or does the clock start over again? (i.e. will the loans be discharged after 18 years or 20 years?)
Also, will switching to the new plan cause all the accumulated interest to capitalize?
Thank you for your help!
Interest does not capitalize when you change payment plans. I believe Heather clarified on another post that any all eligible income-sensitive payments plans ( IBR, PAYE, REPAYE ) count towards forgiveness.