IBR forgiveness - a question

[Anonymous]

Currently, my wife and I have Stafford loans through the Federal Direct Loans Program. We have our loans set up on extended repayment, and we've been paying for about five years.

We're thinking of switching to IBR. I understand that, under IBR, the remaining balance of a loan is forgiven after 25 years. 

What I'm wondering is--does this 25 year period include the time we've been paying on the loans thus far, using an ordinary extended repayment plan? Or does the clock start when we enter IBR?

ALSO: if we were to later drop OUT of IBR, would the loans still be forgiven after 25 years of payments, or is that forgiveness ONLY applicable if you are enrolled in IBR for a full 25 years?

I'd be grateful for some insight. Thanks!

[Jazzzy]

I don't know the answer about loan forgiveness, but when I talked to Direct Loans about switching from the extended payment plan I am on now to IBR, they were discouraging to me because I knew my income would be going up considerably at some point in the future. They told me that once you are on IBR it is very difficult to get off...that you couldn't go on it now because your income is LOW and then decide to drop it when your income is HIGH. They told me basically that once on IBR you were there for good.

My income did go up quite a bit, so I'm glad I passed. So, consider what you expect your household income to do in the future before deciding on IBR.