When I entered IBR you had to show partial financial hardship. Your calculated IBR payment had to be less than your 10-year Standard payment to qualify. Once you qualified and enter IBR: Your 10-year Standard payment at that time becomes your permanent cap. Also you stay in IBR even if you later no longer qualify for PFH. Is this still true?
Now that IBR has removed partial financial hardship does it still cap the payment at the 10-year payment cap?
byu/HoundDog1031 inStudentLoans
Posted by HoundDog1031
2 Comments
Yes the standard cap still applies
Thanks. That makes a lot of sense when I comes to weird payments amounts. I see people trying to figure out if they are in OLD or NEW IBR by using their income and current payments. But if you’re a long time borrowers your payments will probably be capped out by the 10-year standard payment you had when you started.