Good/Bad experiences with IBR???

goodygoody · ‎03-07-2013

Hi again. Well, just found out my student loan payment is definitely doubling from $144 to nearly $300 a month on ICR, though our income definitely did not double, so go figure. Considering switching to IBR for a lower payment, but still concerned about whether this is a bad decision.

I thought I'd just ask if anyone has had a good or bad experience they could share about IBR? I'd like to get as much input as I can before making the final decision, and I feel like firsthand experiences are always helpful. So any comments are most appreciated!!

If it's relevant, my loans started at about $70,000+ and are now at $117,000 including all the interest that's been added. I've been in ICR for about 7 years. My payment was $0 for 4 years, then about $40 for 2 years, then $144 for the past year, and now shot up to $300. Our income is about $50,000 a year, and I am married and have 4 dependent children. Thanks!

Kathy4NU · ‎03-07-2013

I am interested in knowing this too. I just finished rehabbing my students loans and they were picked up by Great Lakes.

I just finished filling out all the IBR paperwork and had planned to mail it this weekend. From everything I read this appears to tbe the best plan for me but I haven't heard anyone talk about it either.

June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans

laz98 · ‎03-07-2013

I haven't been on IBR for a full year yet, so I don't really have much experience. My approval process was not too bad, & there haven't been any mishaps.

Simply827 · ‎03-07-2013

I've been on IBR for 3 years so far. The application process has been relatively simple. Just be sure you get your paperwork in well before your current plan expires so that there aren't any mishaps. If that's not possible, be sure to get a forbearance for a month or two.

The only problem I have is that my loans aren't going down, but up. I guess if your income ever gets to the point where you don't qualify anymore, then you may have higher payments then you would have originally had. If it's allowable and feasible, I would recommending making additional payments to your Unsub loans to keep the interest down.

goodygoody · ‎03-07-2013

Do you happen to know if you are on IBR and end up making too much money to remain in that program (which I cannot even imagine given the size of my loans...lol), can you then go on ICR? I know it's hard to switch out of IBR once you're in it, but if your income increases and you don't qualify, is ICR an option again? I'm really scared of a scenerio where I don't have any options but the full payment, because that's over $1000 a month in my case!

jzsnow · ‎03-07-2013

You'll never pay more on ibr than you will on standard. We are on ibr. We make 58k a year, family of 7, and we pay nothing. Play with the ibr calculator and see what your payments might be as your income goes up. It goes based on your AGI, so you can always increase your 401k or deductions to help lower that agi!

Simply827 · ‎03-07-2013

@goodygoody wrote:
Do you happen to know if you are on IBR and end up making too much money to remain in that program (which I cannot even imagine given the size of my loans...lol), can you then go on ICR? I know it's hard to switch out of IBR once you're in it, but if your income increases and you don't qualify, is ICR an option again? I'm really scared of a scenerio where I don't have any options but the full payment, because that's over $1000 a month in my case!

I don't know the exact qualifications for ICR, but as long as you qualify, I don't see why you couldn't go back. I'll likely be kicked out of or decide to leave IBR this year since my income increased. IBR likely won't be the most affordable payment for me, and that's IF I qualify.