Hi everyone,
I was recently approved for the PAYE (Pay As You Earn) repayment plan for my federal student loans. I received an official letter confirming I was placed on PAYE and everything looked correct.
However, today I received another correspondence from my loan servicer. This new letter doesn’t mention PAYE specifically. Instead, it says I am on an “Income-Driven Repayment (IDR) plan.”
The confusing part is:
My monthly payment amount did NOT change
The account still reflects the same situation overall
But the wording now seems more generic as “IDR plan” instead of PAYE
From what I understand, PAYE is one of the IDR plans, so I’m not sure if this is just a reclassification in wording or if something actually changed behind the scenes.
Has anyone else experienced this?
Did your servicer switch terminology like this after approval, or should I be concerned that I was moved off PAYE into a different plan?
Any insight would really help
Got approved for PAYE but 10 days later, new letter says “IDR plan” did my repayment plan change or is this normal?
byu/help_me_out1956 inStudentLoans
Posted by help_me_out1956
3 Comments
Yes, you have nothing to worry about. “IDR” is the generic term for all “Income Driven Repayment” plans.
There is no specific “IDR” plan. If you were approved for PAYE, PAYE is what you have. IDR is just a generic reference to it.
Thanks so much everyone! They had me worried! Receiving this kind of correspondence from your servicer on a Sunday should be illegal!
Ignore it. You will get another letter that has your actual plan on it shortly. Im guessing you have MOHELA? This seems to be pretty common with them.