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?
Full Version: Income sensitive payments
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
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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)
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)
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.
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.
sorry, posted twice
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