Student loan IBR

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    My income based repayment amount is $0. Im currently in school. I know NACA wont accept $0 payment. If i put my loan in deferrment and only pay interest will that work?

    Will NACA accept any amount as long as it not $0? Example, if I call and say I wanted to pay $5 instead of $0 and Nelnet agreed.
    This is the last piece I need to figure out


    I think the rule is you would need to get the financing company to provide a letter stating how much the monthly payment would be if you didn’t have deferred payments. That amount is factored into your DTI. For income based it might be similar if you have a 0 payment. I’m not sure about switching it to 5.


    If they arent deferred, its $0 ibr.
    I want to change the ibr but am unsure how low i can go


    Are you sure NACA won’t accept $0 for an IBR payment? I could have sworn lots of people on here had the same thing and were fine.


    @peapod0609 I remember reading they wont accept $0 because eventually you will have to start paying back the debt.


    They won’t accept 0 as your “monthly payment”. They want to know what it would be if it were not deferred. They factor in a phantom debt so worst case scenario you have to start paying off your loan with your current income you could still afford to pay your mortgage with no issues.

    You do not have to actually start paying off your loan.


    Hello Destined4ownership,

    A zero student loan payment is not acceptable for calculating your affordability in the NACA program. There are in fact several ways of determining a non-zero payment figure and yoru counselor can help you determine the appropriate one to use.

    Worst case scenario, plug your loan figures into the student loan calculator at . If fall else fails, we can use the figure it provides.

    Tim Trumble
    Online Operations, NACA

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