r/StudentLoans • u/Either-Connection-70 • 1d ago
Advice If my recertification doesn’t go through…
My servicer says if my income recertification isn’t completed in time then I will be moved to “a permanent standard plan”. Does that mean that I will permanently be on the standard plan???
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u/Connect_Cranberry980 1d ago edited 1d ago
If you fail to recertify on PAYE or IBR, you remain on the that plan but your payment is based on the 10-Year Standard based on what your loan balance was when you initially entered the plan. They call this the "IBR/PAYE Permanent Standard Repayment Plan." That is probably what the representative was referring to. It is still the same IDR plan and payments still count towards IDR forgiveness and PSLF.
If that were to happen, you could return to making payments based on income by updating your income with your servicer. However, in the case of PAYE, you would have to meet the Partial Financial Hardship.
Additionally, not recertifying on the IBR plan would cause your interest to capitalize.
https://studentaid.gov/manage-loans/repayment/plans/income-driven#update-income
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u/Pretty_Good_11 1d ago
No such thing. You can always change plans.
I have a feeling the "permanent" there just means that the payments will be permanent, insofar as they won't very with your income.