Celebrating 10 years! 2007-2017

Question About PAYE

right now I'm under IBR (15%, 25 year forgiveness). I was a lolwutjobs07/06/17
I believe you can consolidate your stafford/FFEL loans into sjlawyer07/06/17
You might want to look into REPAYE. I think you would be el ipesq07/06/17
Are there any caps on how much can be forgiven? I have monop lolwutjobs07/06/17
Valid question that I can't confirm. There is a rumor about sjlawyer07/06/17
Not currently, but that could change. I don't know if any c ipesq07/06/17
Does refinancing from an IBR loan to a PAYE or REPAYE (thoug loblawyer07/06/17
It does not restart the clock. Your ibr payments will count ipesq07/07/17
Are you sure about that? When you refinance, it's essentiall 6figuremistake07/07/17
Changing payment plans is not refinancing. You can change pa fettywap07/07/17
Ah, misread - when he said "refinancing", I thought he meant 6figuremistake07/07/17
If you were referring to me, I did mean consolidating in ord loblawyer07/07/17
Yeah, I think REPAYE/PAYE is only available to direct borrow 6figuremistake07/07/17
You are correct re: Repaye/paye is only available on direct sjlawyer07/07/17
That is correct. You need to get them consolidated with Depa fettywap07/07/17
I am on IBR now. When I last spoke to my loan people they ma diligentsolo07/07/17
Do PAYE and REPAYE still allow for spouses to file taxes sep david6198307/07/17
I believe paye allows for this but repaye will count both sp ipesq07/07/17
Correct karlmarx07/07/17
lolwutjobs (Jul 6, 2017 - 2:04 pm)

right now I'm under IBR (15%, 25 year forgiveness). I was a first time borrower in 2008 and graduated law school in 2012. It would appear that only my stafford and FFEL Plus loans from 2008/2009 do not qualify for PAYE but all my other loans do. Is there anyway i can still hop on the PAYE train? Any consolidation methods?

Reply Like (0)
sjlawyer (Jul 6, 2017 - 2:39 pm)

I believe you can consolidate your stafford/FFEL loans into a direct loan which is PAYE eligible.

Reply Like (0)
ipesq (Jul 6, 2017 - 2:22 pm)

You might want to look into REPAYE. I think you would be eligible. It still is 25 years forgiveness, but it caps payments at 10%.

Reply Like (0)
lolwutjobs (Jul 6, 2017 - 3:54 pm)

Are there any caps on how much can be forgiven? I have monopoly money type debt at this point

Reply Like (0)
sjlawyer (Jul 6, 2017 - 4:58 pm)

Valid question that I can't confirm. There is a rumor about Repaye which I think involved an Obama discussion about capping it, but I don't think that ever happened.

Reply Like (0)
ipesq (Jul 6, 2017 - 5:04 pm)

Not currently, but that could change. I don't know if any change would apply to people currently enrolled in the program. However, don't forget about the debt tax bomb that will occur after 25 years when all unpaid amounts are forgiven.

Reply Like (0)
loblawyer (Jul 6, 2017 - 8:29 pm)

Does refinancing from an IBR loan to a PAYE or REPAYE (thought they were both capped at 10%) loan restart the 25 year clock? My only consideration is minimizing payments. I also have monopoly money level debt that will likely not be repaid - not even worth it to plow through the uncapitalized interest at this point.

Reply Like (0)
ipesq (Jul 7, 2017 - 1:06 am)

It does not restart the clock. Your ibr payments will count towards 25 year plan/forgiveness.

Reply Like (0)
6figuremistake (Jul 7, 2017 - 8:18 am)

Are you sure about that? When you refinance, it's essentially getting a brand new loan (you have to sign a new promissory note). I don't have experience with an income based plan after refinancing because I went in a 25 year payment plan to reduce my monthly payments. I was already about five years into repayment, but they gave me another 25 years after consolidation - essentially giving me a 30 year repayment period.

Reply Like (0)
fettywap (Jul 7, 2017 - 9:24 am)

Changing payment plans is not refinancing. You can change payment plans as often as you want. It's still the same lender. No penalty for it.

Reply Like (0)
6figuremistake (Jul 7, 2017 - 9:50 am)

Ah, misread - when he said "refinancing", I thought he meant consolidation. As you mention, switching payment plan isn't refinancing and shouldn't restart the clock. That said, be careful when consolidating because it's essentially a new loan.

Reply Like (0)
loblawyer (Jul 7, 2017 - 11:36 am)

If you were referring to me, I did mean consolidating in order to move from IBR to PAYE/REPAYE (pretty sure I have to consolidate to a Direct loan to qualify).

Reply Like (0)
6figuremistake (Jul 7, 2017 - 12:00 pm)

Yeah, I think REPAYE/PAYE is only available to direct borrowers. I'm not 100% sure about consolidation resetting the clock, but I do know that I had to sign a new promissory note and was able to get a new 25 year term. I'd definitely research the effect of consolidation on the forgiveness period before making a decision.

Reply Like (0)
sjlawyer (Jul 7, 2017 - 12:03 pm)

You are correct re: Repaye/paye is only available on direct loans. I believe that consolidating from FFEL/Stafford into a direct consolidation loan does restart the clock.

Reply Like (0)
fettywap (Jul 7, 2017 - 2:12 pm)

That is correct. You need to get them consolidated with Department of Education and sign new loan documents, and then you can bounce around PAYE/REPAYE/IBR all you want.

Reply Like (0)
diligentsolo (Jul 7, 2017 - 1:28 am)

I am on IBR now. When I last spoke to my loan people they made a point of telling me that since some of my loans were eligible for PAYE, I could consolidate all of my loans and then they would all be eligible for PAYE. I am in the process of doing that right now.

Reply Like (0)
david61983 (Jul 7, 2017 - 6:27 am)

Do PAYE and REPAYE still allow for spouses to file taxes separately and not count that income?

Reply Like (0)
ipesq (Jul 7, 2017 - 11:53 am)

I believe paye allows for this but repaye will count both spouses income whether you file separate or together.

Reply Like (0)
karlmarx (Jul 7, 2017 - 2:06 pm)

Correct

Reply Like (0)
Post a message in this thread