Can one be kicked out of IBR for making a large loan repayment

[docintrg]

Hi,

I am on IBR. However, due to my parents help I paid in about $4000 on one of my $40,000 loan. My loan servicer has removed me from IBR and has begun deducting full loan repayment amount with its direct debit authority from my bank account.

There is no change in my income. And it was a one time payment. With my other loans I was paying the full IBR amount based on 15% of income, but now with this I am being charged much more beyond my ability to pay.

Has any one encounted this situation? My repeated requests to put me back on IBR have had no effect for the last 5 months. The loan servicer is saying this is as per IBR rules.

Does any one know about this or faced similar situation? Please post and reply to me as well.

Thanks for any help.

doc

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[dpmd]

Hi,

I am on IBR. However, due to my parents help I paid in about $4000 on one of my $40,000 loan. My loan servicer has removed me from IBR and has begun deducting full loan repayment amount with its direct debit authority from my bank account.

There is no change in my income. And it was a one time payment. With my other loans I was paying the full IBR amount based on 15% of income, but now with this I am being charged much more beyond my ability to pay.

Has any one encounted this situation? My repeated requests to put me back on IBR have had no effect for the last 5 months. The loan servicer is saying this is as per IBR rules.

Does any one know about this or faced similar situation? Please post and reply to me as well.

Thanks for any help.

doc

I would guess it would have something to do with the remaining amount of the loan versus your income (including the extra 4K that they are now figuring in) no longer qualifying you for IBR and bumping you back to standard repayment. IBR is meant to be for those unable to make standard repayment and I guess they decided that you having an extra 4K to thrown onto loans means you should be able to pay.