Celebrating 10 years! 2007-2017

New IBR Rules

I have contacted FedLoan Servicing with my concerns about th learnedhand8212/12/12
Also, earliest date to apply for "Pay As You Go" is December learnedhand8212/12/12
I would like this to be true. But every written article and theesquire12/12/12
You must be a NEW borrower, defined as having no outstanding murray01/02/13
Except for the millions of people who graduated before 2008. keithd12/12/12
IBR didn't become law until 2007. learnedhand8212/12/12
What does that have to do with anything? If you have federa keithd12/12/12
You must be a NEW borrower, defined as having no outstanding murray01/02/13
^^titcr tttgrad12/12/12
I was under the impression that you needed to have taken a l dakoking12/12/12
I thought the same. What I posted above is from the horse's learnedhand8212/12/12
well someone should take the horse out back and put it down whatisrap12/13/12
You must be a NEW borrower, defined as having no outstanding murray01/02/13
What happens to people like me whose loan was taken out befo zodd12/12/12
No, I think it just means that you won't qualify for the new atheistlawyer12/12/12
Twenty five year time frame for forgivenes (unless you quali learnedhand8212/12/12
If I have at least one loan before 2008 and no loans in 2012 sunny12/30/12
If I have at least one loan before 2008 and no loans in 2012 sunny12/30/12
The only issue I could see here is qualifying for federal lo theesquire12/30/12
http://studentaid.ed.gov/sites/defa ult/files/pay-as-you-earn countryfried12/13/12
FYI - You can apply for the pay as you go program now. I di shouldalearnedmath12/29/12
This looks enticing, but I have undergrad loans from pre-200 amaterasu12/30/12
"You must be a new borrower. You are a new borrower if you h justranting12/30/12
Huh. I need to check and see if my undergrad loans were pai mikoyan12/31/12
You must be a NEW borrower, defined as having no outstanding murray01/02/13
Not sure how (or if) you got through law school with ur obvi whatisrap01/02/13
Yeah, that is not an accurate statement. shouldalearnedmath01/02/13



learnedhand82 (Dec 12, 2012 - 5:18 pm)

I have contacted FedLoan Servicing with my concerns about the new student loan repayment amendments. I was told the following:

1. If you took out a federal loan anytime after 2008, you qualify.
2. You must reapply for the "Pay As You Go" on studentloans.gov.
3. You will receive credit for past "qualifying payments."
4. For public service employment, loan balances will be discharged after ten years (no change).
5. For non-public service employment, loan balances will be discharged after twenty years (new).

In conclusion, I am of the position that the "new IBR" rules will apply to almost everyone under the "old IBR" rules.

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learnedhand82 (Dec 12, 2012 - 6:43 pm)

Also, earliest date to apply for "Pay As You Go" is December 21, 2012.

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theesquire (Dec 12, 2012 - 8:59 pm)

I would like this to be true. But every written article and document I can find says you had to have taken out your first loan in 2008 and at least one loan after January 1, 2012. Besides the word of the grunts at sallie Mae, is there anything in writing confirming you do not need another loan in 2012?

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murray (Jan 2, 2013 - 1:22 pm)

You must be a NEW borrower, defined as having no outstanding balance on a Direct Loan when you obtain a new loan on or after October 1, 2007. So if you took a loan say on September 2010 for $ 25,000 and did not pay it off, and later took three Direct Loans after 2011, none of the three loans would qualify for the 20 year IBR. In effect, only ONE loan made after 2011 would qualify for the new IBR UNLESS you paid it off before you took a new loan. So the new IBR is for ONE LOAN ONLY.

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keithd (Dec 12, 2012 - 5:43 pm)

Except for the millions of people who graduated before 2008...

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learnedhand82 (Dec 12, 2012 - 6:42 pm)

IBR didn't become law until 2007.

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keithd (Dec 12, 2012 - 6:45 pm)

What does that have to do with anything? If you have federal loans from any point in time you are eligible for IBR. The loans don't have to be post-2007. Otherwise I wouldn't qualify, and I am on it now. So again, the millions of people who have student loans from the pre-2008 era are screwed.

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murray (Jan 2, 2013 - 1:23 pm)

You must be a NEW borrower, defined as having no outstanding balance on a Direct Loan when you obtain a new loan on or after October 1, 2007. So if you took a loan say on September 2010 for $ 25,000 and did not pay it off, and later took three Direct Loans after 2011, none of the three loans would qualify for the 20 year IBR. In effect, only ONE loan made after 2011 would qualify for the new IBR UNLESS you paid it off before you took a new loan. So the new IBR is for ONE LOAN ONLY.

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tttgrad (Dec 12, 2012 - 5:48 pm)

^^titcr

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dakoking (Dec 12, 2012 - 5:57 pm)

I was under the impression that you needed to have taken a loan out in 2012 as well.

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learnedhand82 (Dec 12, 2012 - 6:42 pm)

I thought the same. What I posted above is from the horse's mouth.

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whatisrap (Dec 13, 2012 - 6:20 am)

well someone should take the horse out back and put it down because it is giving people incorrect information. The qualifiers for this new 10% IBR are very specific. No loan before 2008 and one loan 1/2012 or later.

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murray (Jan 2, 2013 - 1:23 pm)

You must be a NEW borrower, defined as having no outstanding balance on a Direct Loan when you obtain a new loan on or after October 1, 2007. So if you took a loan say on September 2010 for $ 25,000 and did not pay it off, and later took three Direct Loans after 2011, none of the three loans would qualify for the 20 year IBR. In effect, only ONE loan made after 2011 would qualify for the new IBR UNLESS you paid it off before you took a new loan. So the new IBR is for ONE LOAN ONLY.

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zodd (Dec 12, 2012 - 6:00 pm)

What happens to people like me whose loan was taken out before 2008 but who is currently enrolled with IBR? Does that mean when I have to re-apply next year I will be thrown out?

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atheistlawyer (Dec 12, 2012 - 6:02 pm)

No, I think it just means that you won't qualify for the new shorter payback period of 20 years like more recent borrowers. You still have to make payments for 25 years before your balance gets wiped out.

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learnedhand82 (Dec 12, 2012 - 6:41 pm)

Twenty five year time frame for forgivenes (unless you qualify for PSLF)and your payments will be capped at 15% of monthly discretionary income.

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sunny (Dec 30, 2012 - 3:51 pm)

If I have at least one loan before 2008 and no loans in 2012 or later, but want the more favorable terms, why wouldn't I just get a tiny government loan for a community college now? Even if I only took one class and dropped out, it's still a small government loan and I would qualify for the better terms. Seems a good idea in my opinion and a loophole. Am I missing something?

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sunny (Dec 30, 2012 - 3:51 pm)

If I have at least one loan before 2008 and no loans in 2012 or later, but want the more favorable terms, why wouldn't I just get a tiny government loan for a community college now? Even if I only took one class and dropped out, it's still a small government loan and I would qualify for the better terms. Seems a good idea in my opinion and a loophole. Am I missing something?

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theesquire (Dec 30, 2012 - 4:16 pm)

The only issue I could see here is qualifying for federal loans in the first place. Don't you have get a higher degree to qualify for financial aid?

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countryfried (Dec 13, 2012 - 9:00 am)

http://studentaid.ed.gov/sites/default/files/pay-as-you-earn.pdf

You need a new loan or consolidation after 10/1/11.

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shouldalearnedmath (Dec 29, 2012 - 2:53 pm)

FYI - You can apply for the pay as you go program now. I did it through myedaccount. I just clicked on the "lower my payment" link and picked the program. If you are not eligible it will not be an option.

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amaterasu (Dec 30, 2012 - 6:23 pm)

This looks enticing, but I have undergrad loans from pre-2007. Does this disqualify me? I will call after New Years to find out for sure, but for instance could I separate my post-2007 loans and put them in this program and put the pre-2007 loans into IBR?

If that doesnt work, then what about this: my undergrad loans are really not substantial, and what would happen if I just paid them all off in full, then I would only have post-2007 loans left =P. What would they say then?

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justranting (Dec 30, 2012 - 7:02 pm)

"You must be a new borrower. You are a new borrower if you had no outstanding balance on a Direct Loan or FFEL Program loan as of Oct. 1, 2007, or if you had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new Direct Loan or FFEL Program loan on or after Oct. 1, 2007."

It sounds like I won't qualify. In any case, we can apply for PAYE, and if it turns out we're not eligible, we can still apply for old IBR. Is that correct?

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mikoyan (Dec 31, 2012 - 10:04 pm)

Huh. I need to check and see if my undergrad loans were paid off prior to entering law school. I think they were.

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murray (Jan 2, 2013 - 12:14 pm)

You must be a NEW borrower, defined as having no outstanding balance on a Direct Loan when you obtain a new loan on or after October 1, 2007. So if you took a loan say on September 2010 for $ 25,000 and did not pay it off, and later took three Direct Loans after 2011, none of the three loans would qualify for the 20 year IBR. In effect, only ONE loan made after 2011 would qualify for the new IBR UNLESS you paid it off before you took a new loan. So the new IBR is for ONE LOAN ONLY.

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whatisrap (Jan 2, 2013 - 1:34 pm)

Not sure how (or if) you got through law school with ur obviously lacking reading comprehension skills. Everything you said is wrong.

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shouldalearnedmath (Jan 2, 2013 - 1:37 pm)

Yeah, that is not an accurate statement.

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