Hi All,

I have been having a problem with MYFED loan. About 6 months ago, they capitalized my loans out of the blue.

When I dug deeper as to the reason, they claimed they are capitalizing my loans because I did not submit my IBR request in a timely fashion in 2012 and again in 2014. However, not only are they doing this years after the fact, they are not providing me with any documentation of proof that I didn’t submit in a timely fashion.

I have never missed a deadline to submit IBR proof in my entire time and they won’t help. They just tell me the same thing over and over. I finally got on supervisor to admit that I submitted paperwork in a timely fashion but he said he can’t reverse the capitalization. He hasn’t called me back and now all the new supervisors won’t confirm that a mistake was made.

I have contacted the Ombudsmen every month and no-one has yet to be assigned to my case. Its been over 6 months.

Please help.

The Ombudsmen take FOOOOOREEEEEVER! I think I remember it being over a year. Submitting requests every month will probably not do anything. There are 44 million student loan holders and many horrible loan servicers. That means the line to be heard is quite long. By the time they contacted me, I had forgotten I submitted anything. I had just given up completely.

BUT you can now switch to REPAYE if you wanted to. They already capitalized your loans which is the big problem with the plan. It sounds like you are probably not paying off your interest every month. If you are low income, it might be worth it. I switched last year from IBR. My payments are $0. My annual interest dropped from $5,600 to $2,800. But that is my situation. REPAYE might not fit yours.

I was sitting awake (again) thinking about student loans when I remembered you! I completely spaced the obvious. What the loan servicer says means nothing. Log onto Studentloans.gov. Go to Menu ->My Account ->My documents. Select Income Driven Plan Applications. All your applications are right there ready to view and print. It even lists the date you filed the applications. At the top right of the PDF form should be the words Form Approved. That should be all the documents you need to fight a good fight! Good Luck!