Subscribe to our mailing list

X

I’m on an IBR But Think I’ve Paid Enough on My Federal Loans – Tony

By on August 30, 2016

Question:

Dear Steve,

Original Loan in 1994 was $11,200.00 my current balance today is $11,100.00.

I have a student loan that started with Sallie Mae and is now with Navient. I am currently on an IBR.

My account payment history shows I have paid back over $17,200.00 to Sallie Mae since 1994. I am tired of giving these people my money. When is it enough for them to stop suck money out of a hard working person.

I of course have had forbearances do to tough times working at low paying but best job I came find. It’s not like $50,000.00 per year jobs are just available everywhere.

I’m also now considered 75% disabled do to two separate work related injuries. So to top it off now I can now only work in light duty jobs. I need help with what to do about this loan. It’s killed my credit. I’ve driven nothing but beater cars for the last 7 years. I was just recently turned down for a low payment lease due to my credit score.

I really don’t feel that after paying $17,200.00 on an original $11,200.00 loan that I should have to pay anymore on this loan. Thank You!

Tony

Answer:

Dear Tony,

Depending on your monthly payment on the IBR, your loan balance can grow, just like it did on forbearance. This is exactly why I wrote Why Income Based Student Loan Payments Can Be a Terrible Trap.

At this point your options are to find a bankruptcy attorney who will take on your case and file and adversary proceeding to argue that the IBR payments constitute an unfair hardship, qualify for a Total and Permanent Disability Discharge, or keep making the IBR payments and re-certify every year. This will keep your payment low or at $0/month and after 25 years of payments the balance may be forgiven.

Both the income driven plans and forbearance can easily cause your accrued interest to build and enlarge your balance. That’s the way those programs work.

READ  Will My Inheritance Increase My IBR Student Loan Payment?

morehelp1
Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

One Comment

  1. tony

    August 31, 2016 at 4:16 pm

    Steve Thank You for your quick response. I will take your advice to maintain the low IBR payment plan, I hope to rebuild my credit rating by keeping this account current through these payments. I regret going to college mostly because of this issue. College is not for everyone, completely think it through first. Don’t get yourself in debt pursuing a miss guided dream. .

Share a Comment / Leave a Reply

%d bloggers like this: