u/IncandescentParrot

Hi,

(This does reference my PSLF situation but the question is larger than PSLF)

I've run into a confusing situation based on the difference between the "original" 10-year-payment plan (10ypp) amount and the "current" 10ypp amount and when each one applies. Or, perhaps, an entirely "new" 10ypp based on now to ten years in the future. Sorry for the wall of text; this takes a bit of explanation.

I entered repayment in 2016. I started with about 52k in loans and it's currently at 42k. My "original" 10ypp was $571. My current 10ypp, if I was to switch to that plan right now, would be $890 according to the student loan estimator on studentaid.gov (it's using a term end date of 2030 instead of 2026, I assume due to all of the COVID forbearances and other lawsuit-related fuckery).

I'm at 102 payments on PSLF (I made some mistakes at the start or I could have been at 120 now), almost all on the PAYE plan. PAYE caps your payments at the 10ypp amount, which for me correlated to $571. I paid less than that for most of my time under the PAYE plan but in the last couple years have hit that cap.

Last year I've received a raise that disqualified me for PAYE. I didn't know that at the time; I just now tried to recertify and studentaid.gov said I was qualified for PAYE (despite having my tax returns), so I submitted under that plan. I was rejected 24 hours later by MOHELA because my income was too high. Relatedly all of the estimated monthly payments that the studentaid.gov website was giving me for my various recertification options seem to be very wrong.

After doing a little research I saw that I probably qualify for the IBR plan now that there is no partial financial hardship requirement. That plan is also capped at the 10-year-payment amount. I googled and it seemed like this 10ypp cap should also be $571, so I submitted an application to recertify for IBR. Studentaid.gov said my payments would be capped at $570 (the original 10ypp) when I submitted the application.

I'm now not so sure about that cap. The IBR plan says it uses the 10-year-payment cap based on when you switch to IBR. I called MOHELA and spent about an hour on the phone with an "advanced agent." They put me on hold numerous times to talk to a supervisor as I explained the situation. Ultimately they told me that:

1. My payment under IBR will be capped at a 10ypp of $855, not the original 10ypp of $571 (I don't know where $855 came from, as compared to studentaid.gov saying my current 10ypp would be $890, and didn't ask because I didn't know about the discrepancy til after the fact )
2. I could just not recertify my IDR plan and I will remain on PAYE, just "uncertified," but my payment will be calculated as the original 10ypp of $571 (which is what I was paying anyways, as I had hit that cap).
3. Those "uncertified" PAYE payments will count towards PSLF.
4. It would save me the most money to cancel my IBR application and just stay on the "uncertified" PAYE plan.

The MOHELA rep told me they couldn't confirm anything in writing but that I could call the feds to confirm if those payments would count towards PSLF. I will do that, but in the meantime, I am wondering if anyone has first hand experience with this? There seem to be conflicting information about which 10ypp applies when.

For example, I've seen multiple Reddit threads from people saying the IBR 10ypp cap is calculated based on your current principle and what a "new" 10ypp on that principle would be at the time you enter IBR. But that number would be lower than my original 10ypp of $571 since my current principle is less than it was when I started. On the other hand, the MOHELA rep told me my IBR 10ypp cap would be the "current" 10ypp cap, while Studentaid.gov told me my IBR cap would be the "original" 10ypp cap.

I can save about $6000 if I stay "uncertified" and pay $571 instead of $890 (or $855, whichever is correct) over the next 18 months, but I don't want to risk those payments not qualifying for PSLF. I don't know who to believe given all the horror stories about MOHELA and bad information, and their inability to confirm anything in writing. It'd be an expensive and long experiment to run on my own. Has anyone personally dealt with this situation before? Specifically, has anyone swapped to IBR and seen what the 10ypp cap actually is -- based on the "original," the "current," or a "new" 10ypp calculation?

Thank you.

Hi,

I've run into a confusing situation based on the difference between the "original" 10-year-payment plan (10ypp) amount and the "current" 10ypp amount and when each one applies. Or, perhaps, an entirely "new" 10ypp based on now to ten years in the future. Sorry for the wall of text; this takes a bit of explanation.

I entered repayment in 2016. I started with about 52k in loans and it's currently at 42k. My "original" 10ypp was $571. My current 10ypp, if I was to switch to that plan right now, would be $890 according to the student loan estimator on studentaid.gov (it's using a term end date of 2030 instead of 2026, I assume due to all of the COVID forbearances and other lawsuit-related fuckery).

I'm at 102 payments on PSLF (I made some mistakes at the start or I could have been at 120 now), almost all on the PAYE plan. PAYE caps your payments at the 10ypp amount, which for me correlated to $571. I paid less than that for most of my time under the PAYE plan but in the last couple years have hit that cap.

Last year I've received a raise that disqualified me for PAYE. I didn't know that at the time; I just now tried to recertify and studentaid.gov said I was qualified for PAYE (despite having my tax returns), so I submitted under that plan. I was rejected 24 hours later by MOHELA because my income was too high. Relatedly all of the estimated monthly payments that the studentaid.gov website was giving me for my various recertification options seem to be very wrong.

After doing a little research I saw that I probably qualify for the IBR plan now that there is no partial financial hardship requirement. That plan is also capped at the 10-year-payment amount. I googled and it seemed like this 10ypp cap should also be $571, so I submitted an application to recertify for IBR. Studentaid.gov said my payments would be capped at $570 (the original 10ypp) when I submitted the application.

I'm now not so sure about that cap. The IBR plan says it uses the 10-year-payment cap based on when you switch to IBR. I called MOHELA and spent about an hour on the phone with an "advanced agent." They put me on hold numerous times to talk to a supervisor as I explained the situation. Ultimately they told me that:

1. My payment under IBR will be capped at a 10ypp of $855, not the original 10ypp of $571 (I don't know where $855 came from, as compared to studentaid.gov saying my current 10ypp would be $890, and didn't ask because I didn't know about the discrepancy til after the fact )
2. I could just not recertify my IDR plan and I will remain on PAYE, just "uncertified," but my payment will be calculated as the original 10ypp of $571 (which is what I was paying anyways, as I had hit that cap).
3. Those "uncertified" PAYE payments will count towards PSLF.
4. It would save me the most money to cancel my IBR application and just stay on the "uncertified" PAYE plan.

The MOHELA rep told me they couldn't confirm anything in writing but that I could call the feds to confirm if those payments would count towards PSLF. I will do that, but in the meantime, I am wondering if anyone has first hand experience with this? There seem to be conflicting information about which 10ypp applies when.

For example, I've seen multiple Reddit threads from people saying the IBR 10ypp cap is calculated based on your current principle and what a "new" 10ypp on that principle would be at the time you enter IBR. But that number would be lower than my original 10ypp of $571 since my current principle is less than it was when I started. On the other hand, the MOHELA rep told me my IBR 10ypp cap would be the "current" 10ypp cap, while Studentaid.gov told me my IBR cap would be the "original" 10ypp cap.

I can save about $6000 if I stay "uncertified" and pay $571 instead of $890 (or $855, whichever is correct) over the next 18 months, but I don't want to risk those payments not qualifying for PSLF. I don't know who to believe given all the horror stories about MOHELA and bad information, and their inability to confirm anything in writing. It'd be an expensive and long experiment to run on my own. Has anyone personally dealt with this situation before? Specifically, has anyone swapped to IBR and seen what the 10ypp cap actually is -- based on the "original," the "current," or a "new" 10ypp calculation?

Thank you.