I have a combination of undergrad and grad student loans. All were taken out prior to 2014. Initially, I was on the extended repayment plan (30 years). I consolidated my loans (about $66k) around 2022 or 2023 to take advantage of the one time account adjustment and to get on SAVE. I’ve been on SAVE ever since.
I am aware SAVE is dying, and that (by 2028 at the latest) I will have to pick a new plan. I’m considering old IBR because I have a PSLF eligible job, though I’ve only been at it a couple of years.
I was able to make 6 qualifying PSLF payments before going into SAVE forbearance.
Per my back door data, I have 218 qualifying payments for old IBR though. I need to get to 300 for old IBR forgiveness, meaning I need 82 more payments (about 6.5 years).
How does the IBR payment cap work in my situation, i.e., when I have more than 10 years of payments? Does it not apply? Or, if it applies,is it based on: (1) my balance (principal and interest) when I switch to IBR and the monthly amount to pay that balance off in 10 years; or (2) my balance when I consolidated and got on SAVE, and the monthly amount it would take to pay that off in 10 years.
IBR payment cap and old loans
byu/FieryPhoenician inStudentLoans
Posted by FieryPhoenician
1 Comment
Your cap for IBR would be a 10 year standard amount based on your balance when you enter IBR.