I think I messed up here, but want to confirm…
I just got my 90 day notice to choose a new repayment plan. 2 loans totaling less than 10K on SAVE forbearance. I've been under-employed for a while but didn't want my loan balance to keep increasing so I just paid off my interest each month. Finally decided to apply for RAP cuz I'm not making much right now and could use the matching principal payment and waived interest each month.
But now I feel stupid. If I had just let interest accrue during the entire SAVE forbearance without paying any of it down, would all of this have been subsidized as soon as I switched to RAP?
All in all, it doesn't total more than a couple hundred dollars over the past year, but still feels like a stupid mistake I made while trying to keep my loan balance from increasing.
Moving to RAP from SAVE – will accrued interest get waived if payments are low enough?
byu/mozzystar inStudentLoans
Posted by mozzystar
1 Comment
No. Nothing is subsidized or waived from before you go on RAP. You’re fine.