IBR problem

[leopanther]

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I graduated two weeks ago and my first payment is due in a few days.

Applied for IBR right after graduation but they have not processed it yet because I did not submit proof of income (the application, I believe, did not ask for that). Also, I won't have my first pay stub until July 15.

My current plan is graduated by default (I thought default was standard but for some reason mine is not) so my first scheduled payment is significantly higher than what it would be under IBR.

When I called I was told that my only option is to forebear until IBR is processed and that even if I submit proof of income now, it would not change my first payment because they would have had to receive IBR application by beginning of May. I assume my next bill will be the same because of this.

Is anyone in a similar situation or have any advice?

Thank you.

 

[anoz]

I graduated two weeks ago and my first payment is due in a few days.

Applied for IBR right after graduation but they have not processed it yet because I did not submit proof of income (the application, I believe, did not ask for that). Also, I won't have my first pay stub until July 15.

My current plan is graduated by default (I thought default was standard but for some reason mine is not) so my first scheduled payment is significantly higher than what it would be under IBR.

When I called I was told that my only option is to forebear until IBR is processed and that even if I submit proof of income now, it would not change my first payment because they would have had to receive IBR application by beginning of May. I assume my next bill will be the same because of this.

Is anyone in a similar situation or have any advice?

Thank you.

Unfortunately, it seems to depend on whom you talk to and which particular loan company. I have the misfortune of having multiple lenders from before med school and no longer qualify for the post-ed grace period so the loans are due now. The people I spoke with on the phone, asked me to submit an IBR app with previous year's tax returns, and were satisfied with that (which I think is technically wrong, since for the first year you have to submit the alternative documentation, i.e. stubs).

If you have to wait until July to submit a paystub, I would suggest that you have your program submit an "official" looking document on your behalf stating your income, start dates, etc. and they can use that to modify your payment. I know it sucks, but long conversations and being very nice to the call center can sometimes pay off. Good luck!