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FedLoan: IDR request on hold

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  • FedLoan: IDR request on hold

    Just got this message today (7/16) from FedLoan:


    "After initial review of your Income-Driven Repayment (IDR) plan documents, we put your request on hold.

    Once we have processed your request, we will send a follow up email detailing if you were approved or if we were unable to process your request."


    This message is a little disconcerting. We submitted annual paperwork to re-certify for income-driven payment (PAYE) 2 weeks ago on July 3rd; same as we do every year. Our 12 month payment period ends on July 28 after which payments automatically increase to the standard repayment plan (which as residents, would be a financial catastrophe) unless our IDR is re-certified.

    I'll give them a call tomorrow and see what the hold up is, but does anyone have similar experience with this message from FedLoan?

    We are currently residents working toward PSLF.

  • #2
    You may find yourself doing a one-month forbearance. My wife had to do that when she filed income recertification a few years ago closer to the deadline than I'd have liked. They're very nonchalant about suggesting it, like it's nothing they've done or anything that's their responsibility.


    • #3

      They’re very nonchalant about suggesting it, like it’s nothing they’ve done or anything that’s their responsibility.
      Click to expand...

      Ugh. Add this to the list of reasons to just refinance. I'd hoped 4 weeks would be plenty in advance.


      • #4
        I received this exact same email this year and was similarly alarmed. Three days later I received an email saying my IDR had been approved for another year. I read around a bit and it seems FedLoan Servicing is just backed up in working through the requests, so it is taking longer than usual. But I'd stay on top of them because having to go through the one-month forbearance process is a pain and you miss a month of qualifying PSLF payments.


        • #5
          My wife heard nothing for six week, then two weeks before the deadline, they stated she was going to default into full payment because her request wasn't processed.

          One stern phonecall later her requested was processed in less than 24h.

          They are just swamped with the huge increase in people using these plans compared to a few years ago. Call them, I bet you can get it straightened out.


          • #6
            I received the same email this morning regarding my first annual REPAYE re-certification, which I submitted about two weeks prior at the start of July. Called Fedloans and they said there's nothing to worry about, and that I need to wait for my final bill to be sent out from the first cycle- in my case in September, when I consolidated all of my loans last year. She verbatim conveyed "there's nothing wrong with your account" and assured me there was no risk of forbearance. I will still plan on calling again to ensure I get the same story.


            • #7
              Thanks woof. Keep us posted!


              • #8
                Update on this from FedLoan: "we approved you IDR request"


                So fortunately, much ado about nothing! No forbearance, seems like they are just backed up no paperwork.


                • #9
                  thanks for the update!  glad it worked out.

                  Several years ago, my federal loan servicer failed to process the IBR recertification in a timely fashion.  This was before the electronic form from existed.  I submitted the renewal immediately 3 months in advance but they were so backlogged it didn't matter.  They put me on involuntary forbearance for a month, which caused accrued interest to capitalize.  I was not happy to say the least.