It always used to be a capitalizing event if you voluntarily left one IDR plan to jump to another. I think that wasn’t the case with SAVE but now Save is “illegal” so what happened to that rule? I don’t trust a word the government says at this point and hope to hear actual experiences and what you saw in your account balances.
Also, if we are pursing 25/30 year forgiveness under RAP or IBR, does the clock start over and you loose all the payments you’ve made so far? Again, that used to be one of the penalties for switching plans.
People who switched from Save to another IDR plan, did your interest capitalize?
byu/Fancy_dragon_rider inStudentLoans
Posted by Fancy_dragon_rider
2 Comments
been dealing with this mess too and from what i saw in my account, the interest didn’t capitalize when they moved me off SAVE 😅 seems like they’re treating it as involuntary since the plan got axed by the courts
payment count stayed the same too which was honestly my biggest worry – would’ve been brutal to lose 6 years of progress. the servicer rep i talked to said since we didn’t voluntarily switch they’re keeping everything intact but who knows if that’ll stick 💀
Only leaving the IBR plan capitalizes interest.
Switching repayment plans does not reset the forgiveness counter nor has it ever.