I'm just a med student, but posting in hopes of finding an answer for my sister who is an intern and freaking out. I'm trying to help her since she's working a zillion hours right now. She didn't submit her IBR application until early November. Now her first payment is due tomorrow, and she's come to find out that it takes them a while to process those IBR applications. The payment due is over $2,000 (I guess you're defaulted on the pay-it-back-ASAP plan). Is she screwed? Any way out of this?
IBR application still processing and huge payment due tomorrow
- Thread starter KJohnCal
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All she has to do is call her loan servicer and ask for a hardship forbearance--they can do it over the phone. No forms. She can ask for one month or one year. In total (per FedLoan, my servicer), you can get three years total of this economic hardship forbearance.
Ideally, your sister should have called her servicer and explained her situation before the due date, but it's too late. But she needs to get in contact with them and ask if they can help--most likely the answer will be the one month of forbearance, but maybe they can just push her due date back a few weeks.
In the future your sister needs to make sure to apply early for IBR--technically anytime you leave IBR your interest get capitalized. It's no big deal now because her interest capitalizes at the start of repayment, so if she puts her loans in forbearance now she just has one extra month's worth of interest that accumulates prior to capitalization. But if she forgets a year from now, now she has a whole year's worth of interest that will get capitalized (and wouldn't have otherwise capitalized until she left IBR--likely not until she finished residency, and possibly for some time after that if she owes enough).
Ideally, your sister should have called her servicer and explained her situation before the due date, but it's too late. But she needs to get in contact with them and ask if they can help--most likely the answer will be the one month of forbearance, but maybe they can just push her due date back a few weeks.
In the future your sister needs to make sure to apply early for IBR--technically anytime you leave IBR your interest get capitalized. It's no big deal now because her interest capitalizes at the start of repayment, so if she puts her loans in forbearance now she just has one extra month's worth of interest that accumulates prior to capitalization. But if she forgets a year from now, now she has a whole year's worth of interest that will get capitalized (and wouldn't have otherwise capitalized until she left IBR--likely not until she finished residency, and possibly for some time after that if she owes enough).
Thank you very much.
She called today and they are pushing her due date back until her consolidation paperwork and IBR application are processed! She is with FedLoans Servicing. Just FYI to anyone in this position in the future.
She called today and they are pushing her due date back until her consolidation paperwork and IBR application are processed! She is with FedLoans Servicing. Just FYI to anyone in this position in the future.
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