Another year, another major headache – cannot believe I’m back here but here we are… asking for advice/help.
Concise summary:
I am on PAYE. I have been on PAYE since the initiation of my loans (9 years). I just submitted my RECERTIFICATION (NOT new application – not tryin to switch plans) for PAYE – and EdFinancial is saying it “rejected my application because my income is too high to qualify.”
I thought initially this was just a broken automated response but I called them directly and a human confirmed that they rejected it. LOL.
How can you not understand your OWN rules?
You cannot be kicked off of PAYE because your income increases – you just pay the higher amount up to the standard repayment (which I fully anticipated).
Of course this is happening when I’m <12 months from loan forgiveness.
Can anyone please help / share if they have been in a similar situation and how to resolve it?
Thank you!!!
EdFinancial trying to kick me off of PAYE. Help!
byu/NecessaryExample992 inStudentLoans
Posted by NecessaryExample992
1 Comment
You cannot be removed from PAYE if your income increases. You just start paying the 10 year standard cap amount.
Some borrowers on PAYE have been getting these types of “denials” when recertifying with a higher income. The servicers seem to be treating all IDR applications like “new” applications even if they are recerts.
So you were denied but there is no mechanism for them to take you off PAYE and put you on another plan because the regulations don’t give them that option. So ideally nothing will actually happen other than your PAYE payment will become the standard amount, just like if you skipped your required recertification instead of the even submitting the application with your higher income.