ibr student loan problems

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This topic contains 3 replies, has 4 voices, and was last updated by  reachelle6 1 month, 3 weeks ago.

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  • #38690

    Hi everyone,

    I am on the income based repayment plan with my student loan. My current payment is $0. I know that naca can’t take the amount at $0 you have to have a plan that shows you’re paying something even if it’s $5. Well, I have tried to redo my plan to show I’m paying something. I submitted my paperwork and they told me it would remain the same because based on my family size my income falls below poverty level therefore it’s $0. Is there anything I can do, I tried calling my counselor but it’s been almost a week and no call back.

    Thanks in advance

    #38704

    TTrumble
    Member

    Hello prettybling69,

    You are actually mis-interpreting the rules for the IBR a bit. You are correct that a zero payment is not acceptable. However, “you have to have a plan that shows you’re paying something even if it’s $5” is not correct. You have to have a letter from the servicer stating what your payment will be after you are no longer in deferment.

    In your case, that could still be a sticky situation though. Since zero is actually your IBR payment amount, the only other alternative would be the “standard” payment amount, which would be almost certainly impractical as it would likely decimate your affordability.

    I hate to say it, but this may create a delay for you until you can raise your income sufficiently to at least make that $5 payment.

    Keep reaching out to your counselor. However, do it by email. As I’ve noted here before, telephone is probably the least effective way possible to try and contact your counselor.

    Email your counselor, and if you don’t have a response by the end of the day Monday, email me directly and I’ll see what I can do to help.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #38855

    TheWilliams
    Member

    My husband and I are on the same thing and we was going to ask to be on a 50.00 payment in order for it to be calculated into our dti. However the program also allows your payment to increase as your income changes and that could be 50 one year or 150 per month the next few years for a term of twenty years and they are completely forgiven afterwards no matter the balance at 20yr maturity date. How would we go about doing this to meet purchase qualifications. We can afford to pay something other than zero but we qualified based off of family composition size. Also I think its the IDR- Income Driven Repayment for us. We are looking to meet with counselor early feb 2018 and are ready to roll just wanted to get things in order now paperwork wise and for future knowledge purposes

    Thanks In Advance

    • This reply was modified 1 month, 3 weeks ago by  TheWilliams.
    #38859

    reachelle6
    Member

    hello I have private student loan on my credit report it is showing charged off and it is closed it was also closed about 4 years ago how will this affect my qualification for naca?

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