IBR vs. ICR Forum

anni · Post by **anni** » Tue Mar 20, 2012 6:56 pm

I can't afford the regular payment for my direct loans and ICR would be $24 per month. IBR would be $0. I've done some research and found that IBR is usually the better choice, but I don't really understand a lot of this stuff and I figured paying something would be better then nothing, atleast until I start law school in August. Thoughts?

anni · Post by **anni** » Wed Mar 21, 2012 12:09 pm

bump

The Duck · Post by **The Duck** » Wed Mar 21, 2012 12:13 pm

Can't you just ask for a deferment? Call your lender and tell them you're re-entering in August.

http://www.usnews.com/education/blogs/s ... -repayment Seems like IBR is better because the interest isn't capitalized. Either way, it will be during school so you're talking peanuts in the scheme of things.

anni · Post by **anni** » Wed Mar 21, 2012 1:00 pm

The Duck wrote:Can't you just ask for a deferment? Call your lender and tell them you're re-entering in August.

http://www.usnews.com/education/blogs/s ... -repayment Seems like IBR is better because the interest isn't capitalized. Either way, it will be during school so you're talking peanuts in the scheme of things.

Just what I needed! I read that, but I guess didn't pick that up. Thank you!!!!

Also, do you think a deferment until August is a better option? I hadn't thought of just asking for that since there was it showed I qualified for a list of other options online. Does it accumulate the interest the same as IBR?

The Duck · Post by **The Duck** » Wed Mar 21, 2012 1:07 pm

The way I read it, you wouldn't be paying interest on the interest earned between now and August. Once you're not on IBR, it'd capitalize from there. If you have a ton of debt thatd be relevant but it's probably not. Also, I'm not sure you can have a $0 payment on IBR. Are you sure you even qualify?

anni · Post by **anni** » Wed Mar 21, 2012 2:33 pm

The Duck wrote:The way I read it, you wouldn't be paying interest on the interest earned between now and August. Once you're not on IBR, it'd capitalize from there. If you have a ton of debt thatd be relevant but it's probably not. Also, I'm not sure you can have a $0 payment on IBR. Are you sure you even qualify?

Yeah, theres a tool online when I login to the website that asks about income and then tells you what you qualify for and what the monthly payment would be. Apparently I wouldnt qualify for a deferment though so I guess IBR it is.

Gail · Post by **Gail** » Wed Mar 21, 2012 6:43 pm

I'm confused. Are you taking a year off?

If you start paying loans from UG for a year and then re-enter, what happens when you come out of LS with more loans? Does it all set back to 10 years? Or are some loans 10 years and others 9 years and 5 months? Assume they're only federal loans.

anni · Post by **anni** » Wed Mar 21, 2012 6:59 pm

Gail wrote:I'm confused. Are you taking a year off?

If you start paying loans from UG for a year and then re-enter, what happens when you come out of LS with more loans? Does it all set back to 10 years? Or are some loans 10 years and others 9 years and 5 months? Assume they're only federal loans.

Yes, I graduated August 2011. I have no idea, but if I get approved for IBR it goes to 25 years. I guess it would go back to 10 once I graduate though, assuming I don't need to go back to IBR

Yes these are all federal loans.

dingbat · Post by **dingbat** » Wed Mar 21, 2012 11:15 pm

anni wrote:
Gail wrote:I'm confused. Are you taking a year off?

If you start paying loans from UG for a year and then re-enter, what happens when you come out of LS with more loans? Does it all set back to 10 years? Or are some loans 10 years and others 9 years and 5 months? Assume they're only federal loans.
Yes, I graduated August 2011. I have no idea, but if I get approved for IBR it goes to 25 years. I guess it would go back to 10 once I graduate though, assuming I don't need to go back to IBR Yes these are all federal loans.

Remember that you can always pay more than the minimum.
There might be an advantage to paying IBR for 25 years, then paying extra whenever you have spare cash (I know someone in IB who pays the minimum, but each bonus he gets he pays in an extra chunk)

anni · Post by **anni** » Thu Mar 22, 2012 2:24 pm

dingbat wrote:
anni wrote:
Gail wrote:I'm confused. Are you taking a year off?

If you start paying loans from UG for a year and then re-enter, what happens when you come out of LS with more loans? Does it all set back to 10 years? Or are some loans 10 years and others 9 years and 5 months? Assume they're only federal loans.
Yes, I graduated August 2011. I have no idea, but if I get approved for IBR it goes to 25 years. I guess it would go back to 10 once I graduate though, assuming I don't need to go back to IBR Yes these are all federal loans.
Remember that you can always pay more than the minimum.
There might be an advantage to paying IBR for 25 years, then paying extra whenever you have spare cash (I know someone in IB who pays the minimum, but each bonus he gets he pays in an extra chunk)

Thanks! I'm planning on trying to pay a bit into it every pay check, hopefully that'll help it a little by the time I go to school.

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