My payment and income have been pretty stagnant for the last 8 years and payment was $900… I recertified for IBR and my payment 4X to $3,800/month. What is going on.?
I graduated from undergrad in 2010, and professional school in 2015.
Apparently under IBR I will pay 25 years, at 15% my income.
I was under the impression when I graduated it would be 10% for 20 years. And PSLF is not possible due to my field.
My income went up some, But did not quadruple….
What happened this year?
IBR went from $900 to $3,900
byu/Many_Scientist9039 inStudentLoans
Posted by Many_Scientist9039
4 Comments
If you have any student loans taken out prior to 7/1/14 you are on the Old IBR plan which is 15% of your discretionary income for 25 years. The New IBR plan (loans taken out AFTER 7/1/14) is 10% of your discretionary income for 20 years. Regardless of your loans taken out prior to 2015, even if they’re paid off, you’re only eligible for Old IBR.
What is your loan amount and what is your income? $3900 sounds like you might be on the standard repayment plan with a student loan balance in the 6 figures or a high 6 figure income. Have you ran your numbers through the student loan calculator? [https://studentaid.gov/loan-simulator](https://studentaid.gov/loan-simulator) – If you login, you’ll get the most accurate information. I’ve found the calculator to be nearly accurate for me personally.
New IBR (10%) is for if you were a new borrower when you borrowed in 2014. You were not a new borrower, so you qualify only for old IBR.
You wouldn’t qualify for PAYE because your loans are “too old” from undergrad.
RAP will be your lowest payment. Based on your IBR payment, you’re making in the ballpark of 350K, on rap, that will be a $2900 payment.
Let us know more specific incomes and information, but if your income is 350K -ish, the payment is correct.
I see a lot of struggling people getting financially destroyed but these huge increases after this round of recertification.
You are likely an an “old borrower” (loans before 2014), so the % is 15%.