I’m in a tricky spot. I’ve had student loans since the late 90s, went to professional school after my bachelor’s degree, and consolidated in 2022/2023, so now I have two large consolidated loans (subsidized and unsubsidized).
I’ve been working toward Public Service Loan Forgiveness (currently at 96/120), but yesterday, I tried to apply for an income-driven repayment (IDR) plan because I’m in standard forbearance. The Federal Student Aid website says I’ve made 257 out of 240 qualifying payments under income-based repayment (IBR).
I’ve called the Department of Education and Mohela multiple times. They’ve told me that these payments cover my entire loan balance (over six figures). I’d like my loans discharged for reaching the 240-payment mark in IBR, but I’m unsure what to do next.
Should I apply for SAVE (even though it’s currently on hold because of the injunction) or IBR (which would have a payment of around $450 and might start in a couple of months)? Will applying for SAVE stop me from being processed for the 240-payment forgiveness in IBR?
From what I’ve read and heard, I need to be on an income-driven repayment plan to qualify for forgiveness. However, I’ve also been told that IBR forgiveness is processed automatically. No one seems to know when this will happen or if I’m even on the list.
How do I make sure I’m on the list for IBR forgiveness?
Does it matter which IDR plan I’m on to get my 240/240 IBR forgiveness? Or do I need to be on one at all?
Many people on this forum have seen issues where the payment tracker says they qualify for the 240-payment forgiveness under IBR, but they don’t. If you have loans from before July 2014, you likely fall under old IBR rules, which require 300 payments.
Delaney said: @Zora
So even if I consolidated after 2014 during the Biden administration, I still wouldn’t qualify for the 240-payment forgiveness?
Right. For old IBR, the requirement is 300 payments. If SAVE is upheld or if you qualify for PAYE, it could be 240. Each repayment plan has different rules.
Edit: If your loans include graduate or professional school debt, SAVE would still require 300 payments. Also, based on your loan dates, it seems you don’t qualify for PAYE.
@Delaney
I’m not sure, but if your loans were issued before October 2007, you’re not eligible for PAYE or new IBR. And SAVE only offers 240-month forgiveness for undergrad loans.
It sounds like you’re referencing Public Service Loan Forgiveness (PSLF) or the related TEPSLF program. You might get better advice by posting in this forum’s section for PSLF discussions.
If this isn’t about PSLF, just ignore this suggestion.