MOHELA saying "IBR/PAYE Permanent Standard repayment plan" payments would not count for PSLF since no longer with PFH?
First post. I spent 50+mins on the phone with Mohela to ask if my payments are now "capped" and if these payments would count for PSLF. I searched other recent posts and the information I received today was conflicting. I have $200k+ loans, all before 2019, MFJ. Current PAYE payment has been $2300/month. Payment estimate was to be $2500/month when I manually re-certified.
This is the letter I received, similar to prior posts.
MOHELA received your request for an income-driven repayment (IDR) plan. We are unable to grant your request for the following reason(s):
· Your repayment plan has changed, and your monthly payment amount has been recalculated. Based on the information provided on your Income-Driven Repayment Plan Request, you no longer have a partial financial hardship to qualify you for the income-driven repayment plan you were previously enrolled in. Your loans will be placed on an IBR/PAYE Permanent Standard repayment plan. A notice with details of the new repayment plan, including the new monthly payment amount, will be sent separately.
The Mohela rep stated very matter of fact that no, these payments would not count since I am no longer under a qualified income based repayment plan since I made too much money and no longer have a PFH - that I was denied PAYE and this "IBR/PAYE Permanent Standard repayment plan" is basically not real. He stated that in order for the payments to count for PSLF, I would need to be under an annually re-certified plan, with terms of repayment for 12 months and that I am not under the above plan.
What am I missing here? I thought that once your income exceeds the threshold, your payments are capped and would still count for PSLF. He is saying that without the approved income based plan certified, they would not. He encouraged me to apply for IBR instead and the amount he quoted me was essentially the same but he says these payments would 100% count.
I am able to switch to IBR if needed, but honestly wasn't planning to until 2027/2028. Should I stay put for now or just make the switch? Thanks all.