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IBR to REPAYE switch = restart of PSLF credit

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Joined 2016-11-08

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Does switching payment plans from IBR to REPAYE mean that any credit towards PSLF disappears?

For example: Graduate X has three years in IBR and made 36 months of qualifying payments toward PSLF. Graduate X then switches to REPAYE to lower her payments. Will the 36 payments she made still count towards earning PSLF?  Or alternatively will she have to make 120 new qualifying payments because she switched payment plans?

I know that reconsolidating resets the clock for PSLF but unclear about whether the same is true for switching payment plans.

Thank you.

Total Posts: 1

Joined 2017-02-13

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Michelle Mc G - 08 November 2016 01:29 PM

Does switching payment plans from IBR to REPAYE mean that any credit towards PSLF disappears?

For example: Graduate X has three years in IBR and made 36 months of qualifying payments toward PSLF. Graduate X then switches to REPAYE to lower her payments. Will the 36 payments she made still count towards earning PSLF?  Or alternatively will she have to make 120 new qualifying payments because she switched payment plans?

I know that reconsolidating resets the clock for PSLF but unclear about whether the same is true for switching payment plans.

Thank you.

I am also interested in an answer to this question.  I suspect the answer is that switching from IBR to REPAYE will not reset the clock, but I am unable to find an answer.

Thanks!

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Joined 2015-01-08

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I am quite sure that switching repayment plans in no way resets the clock. Reconsolidating will, because you are creating a brand new loan by doing so. The dept of ed has allowed payments under the 10-year standard repayment to count towards PSLF, so that those who switch to an income based payment plan can get some credit for the payment’s they’ve made up to that point. That alone gives me confidence that switching between IBR and REPAYE will not reset any PSLF clock. Now, my question is will the 20/25 year forgiveness clocks get reset if you switch between IBR and REPAYE…...I’m thinking it might….