Income sensitive payments

[flcleo]

Can you elect income sensitive payments and then choose another payment option if your situation (income) improves? Let's say you are working as a temp and you don't have secure employment but are looking for it. I'm not trying to be sly here, I'm just very scared of commiting to a payment I can't afford. I also don't want to have my payment skyrocket by several hundred dollars simply b/c my income improves. How drastically could it jump?

 

Is income sensitive only available for those people who consolidate?

[angeleyeskkhr]

I believe I had the income contingent payment option on my SL's before they were consolidated, as well as on my new SL's that haven't been consolidated yet.

 

I don't know how much or if they will skyrocket, but from my understanding it's based off how much you make and is supposed to be a way to asure that you can afford the payments, so I don't think they would balloon out so much that you couldn't afford them.

 

As far as electing another payment plan after you've selected that, I don't know. Are you still in the 6 month grace period/in deferment/forbearance, or still in school? If so, I'd just call up my lender and/or go to the financial aid office of my school and inquire as to what entails each of them (I remember receiving a packet that detailed the difference, lemme see if I can find it online though, cuz it could be ANYWHERE in this house )

 

ETA: Here is a link to WF student loans, I would assume others are the same and/or similar (at least in regards to FFELP loans)... It says the interest only option can be asked for at any time during repayment and that each borrower is entitled to 4 years of I/O payments, it didn't say the others could be asked for at any time...again you might want to check with your lender....

 

https://www.wellsfargo.com/student/loans/re...ent/plans.jhtml

 

(sorry I don't know how to do the link thing in edit)

Edited January 16, 2006 by angeleyeskkhr

[flcleo]

As far as electing another payment plan after you've selected that, I don't know. Are you still in the 6 month grace period/in deferment/forbearance, or still in school?

 

 

I'm actually finishing rehab. I've never consolidated and I wanted to hold off to see if the rates will rise more or possibly drop a bit seeing as how they made their biggest jump in history last year. I know Congress is considering eliminating the variable rate for loans (I will consolidate prior to that). 8, 9 10% worked when people borrowed small amounts, with the loan amount people are graduating with today, it's unmanageable. You'll never pay your loans off with those interest rates.

[flcleo]

sorry, posted twice

Edited January 16, 2006 by flcleo