Heres a question for Joshua Cohen (and/or any other attorneys among us who deal with SLD--??): I just completed my IBR renewal application, and noticed something scary (to me) on p. 6 of the application form+info. It reads: Under the IBR or Pay As You Earn plan, your monthly payment may be less than the monthly accruing interest. On subsidized leans, you are not required to pay any monthly accrued interest that exceeds your monthly payment amount for a maximum of three consecutive years from the date that you start repaying your loans under the IBR.... The IBR monthly payment for those renewing the plan (not new borrowers) is -- quoting from p. 4 of the IBR app info -- limited to 15% of your discretionary income [defined as the amount by which your adjusted gross income exceeds 150% of the poverty guideline amount for your state]. But its not clear to me that this will continue to be the case for me, since 2015 will be my fourth year on an IBR plan, and since -- given my high level of SLD, and my low income and consequently low monthly IBR -- I feel sure that my monthly IBR payments have been much less than the monthly accruing interest. So, in light of all this, Im worried that all this means my 2015 monthly payments could be much, much higher than my previous payments, which have been limited to 15% of ... discretionary income. If so, I cant imagine being able to make them, and so would be probably facing default. Am I misunderstanding something?? Given my age (past the age when many have retired), and the fact that, when I am physically unable to work, I will be living on social security and a pension of well under $100 a month (!!!) unless I can work at least another couple of decades . . . this is all pretty worrisome. So thank you very much for any feedback on this.
Posted on: Fri, 21 Nov 2014 22:35:06 +0000
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