I have kind of a specific question regarding IBR. I have made almost 5 years of payments under IBR while working at a PSLF eligible employer during residency. Unfortunately, not all of my Federal loans are Federal Direct loans as I have two FFELP Stafford loans that are not eligible. I have chosen to privately refinance just these two ineligible Stafford loans while staying the course with the Federal Direct loans for PSLF and working at a 501(c)3 employer.
My question is since my income will increase when I recertify soon, my monthly payment will be capped at the required monthly payment under the 10-year Standard Repayment Plan, based on the loan amount owed when I first began repayment. Since the ineligible Stafford loans have been refinanced, will that monthly payment cap now be based on the loan amount owed when I first began repayment minus these Stafford loans? For example, if I owed $180,000 including these Stafford loans when I first began repayment and about $130,000 if you don't count these Stafford loans will my new monthly payment be $2050 or $1500?
I hope that makes sense and sorry for the specific question. Just trying to plan my finances a little.
My question is since my income will increase when I recertify soon, my monthly payment will be capped at the required monthly payment under the 10-year Standard Repayment Plan, based on the loan amount owed when I first began repayment. Since the ineligible Stafford loans have been refinanced, will that monthly payment cap now be based on the loan amount owed when I first began repayment minus these Stafford loans? For example, if I owed $180,000 including these Stafford loans when I first began repayment and about $130,000 if you don't count these Stafford loans will my new monthly payment be $2050 or $1500?
I hope that makes sense and sorry for the specific question. Just trying to plan my finances a little.
Comment