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IBR Repayment & Loan Forgiveness

Started by Meliette13, February 29, 2020, 12:39:32 pm

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Meliette13

This forum is very helpful! I first wanted to just say thank you for this, and for being willing to allow us to ask questions. I have learned so much by going through the posts!

I am currently on an IBR repayment plan, and my payment amount has been $0 for the past few years. I send in my updated info every year as required, and made all minimum payments required before I applied for the IBR. My question is - how do I know for sure I am on the right payment plan to qualify for the loan forgivenes after 25 years? I read somewhere that someone has a $0 withdrawal come out of their account every month - but I do not have an auto withdrawal, because my current payment amount is $0 (and I cannot afford to put anything towards them at this time).

These are the types of loans I have, per the studentaid.gov website:

2 Consolidation Loans total owed $31,304
both are FFELP Consolidation

4 Subsidized Loans
2 are Direct Subsidized with total owed of $25,168
2 are FFELP Stafford Subsidized with $0 owed

5 Unsubsidized Loans
2 are Direct Unsubsidized with total amount owed of $42,915
3 are FFELP Stafford Unsubsidized with $0 owed

How can I be sure all are set up according to the correct IBR plan and my $0 payments are counting towards the 25 years until the balance is forgiven?

I am nervous because every year when I reapply, I am told they are both on the IBR plan, but I see this now when I log into the studentaid.gov website:

DEPT OF ED/NELNET   
REPAYMENT PLAN :   Income-Based Repayment Plan (IBR)
TOTAL BALANCE
$68,083

ASCENDIUM EDUCATION SOLUTIONS, INC   
REPAYMENT PLAN : 
TOTAL BALANCE
$31,304

(not sure who they are and why there is no repayment plan listed??) Used to be Navient, did this company maybe buy out Navient?)

AMERICAN STUDENT ASSISTANCE   
REPAYMENT PLAN : 
TOTAL BALANCE
$0

Sorry for all of the info! I just dont know where I can check to make sure I am going to qualify for the loan forgiveness after 25 years under IBR. Not sure if I should contact the new servicer listed that I have never heard of, seeing how IBR is not listed as the payment plan? Also, has anyone ever heard of having them take $0 withdrawls out of their acct every month to allow those $0 payments to qualify for the forgiveness?

Thanks in advance for any and all assistanct you can provide, it is greatly appreciated!  :)

TheCollegeInvestor

IBR will allow your loans to be forgiven at the end of the loan term, even if it's a $0 payment. See this: Secret Ways To Get Loan Forgiveness.

Ascendium replaces Great Lakes, and they are a lender. Your loans may have transferred to them. I would contact them and confirm you're good with your debt, on IBR, etc.