Didn't Recertify On Time & Put on Standard Plan - Too Late for IDR Plan?

[u/WowRedditIsUseful]

I'm with MOHELA. Does anybody know if you can still apply for IDR after already being put onto a Standard Plan? More specifically, if it's applied for and approved before the first Standard Plan payment is due, can it be replaced with the IDR plan payment amount?

I'm aware that you can request to be put on admin forbearance pending processing of an IDR app, but I'm particularly concerned with if it's possible for that approved IDR payment to replace the standard plan (meaning you no longer have to pay the previously scheduled Standard Plan payment). I would hate to have to pay even a single Standard Plan payment once/if the IDR plan is approved

[u/Ezekyle22]

Theoretically possible but you are hoping that the IDR plan request is processed quickly enough to replace your current payment. Giving tax consent might make it possible.

[u/WowRedditIsUseful → u/Ezekyle22]

So theoretically if it's approved before the standard plan payment is scheduled to be due, MOHELA will void that and replace with new IDR plan?

[u/morbie5 → u/WowRedditIsUseful]

You can always call them and ask for processing forbearance, ymmv on if they grant it

[u/Pretty_Good_11 → u/WowRedditIsUseful]

Yes. Theoretically.

Realistically, you are asking for trouble. Why, when you can also just not wait until the 11th hour and 59th minute?

Because we all know bad things can and do happen when dealing with the servicers. You are not proving any point by waiting until the bitter end.

Linda McMahon doesn't know or care one way or the other. The only one hurt is you when things go south.

People in this sub are already learning that they likely played themselves out of a 1% temporary interest rate reduction by waiting until now to seriously look at switching out of SAVE. Being thrown onto the Standard plan, and then having difficulty getting out without having to make a payment, will likely be the next bit of bad news for some who play with fire with this.

[u/Gnomiish → u/Pretty_Good_11]

I will say that OP isn't asking about waiting until the very last second - they're asking if they'll be required to make a payment on the standard plan regardless of if they apply and get approved for an IDR plan before the due date.

You're making some rather presumptuous statements that really come off as you talking down to OP. Your criticism of people waiting until the last moment to move off of SAVE isn't relevant to OP.

[u/Pretty_Good_11 → u/Gnomiish]

Right. And the answer is that they are not supposed to be, but who really knows?

And, you avoid the issue by not waiting until you are thrown onto the Standard plan. It's not complicated, and what the OP is asking about won't happen if they don't wait until the very last second to move off SAVE.

[u/Gnomiish → u/Pretty_Good_11]

You're making a lot of assumptions still.

OP failed to recertify their IDR on time. If they were on SAVE, then they wouldn't be recertifying.

Talking down to someone and assuming the worst isn't helpful - OP didn't mention SAVE or waiting to the last minute anywhere. You just assumed and came off as scolding OP for that.

[u/Imaginary_Shelter_37 → u/Gnomiish]

I agree that it seems that OP failing to recertify an IDR on time is an oversight or mistake and not an intentional "waiting until the last minute." We are human and sometimes missing a deadline is just the result of having a busy life.

[u/Gnomiish → u/Imaginary_Shelter_37]

And OP isn't blaming anyone else, just asking if/how they can fix it.

The other commenter is just looking to brow beat someone. I've seen them post in other threads and it's the same thing over again.

[u/Pretty_Good_11 → u/Imaginary_Shelter_37]

As is being placed on the Standard plan. My understanding is that people get 60 days notice, and then several other notices, before being unceremoniously dumped into Standard.

It's the result of several oversights, and the result is exactly the same as not moving off SAVE by the deadline. Not sure what the argument is here.

Once on Standard, the are supposed to let you have a forbearance if you don't want to make a payment while having an IDR application processed. But that is discretionary, not automatic. YMMV. Best not to have such a busy life if you have federal student loan debt and don't want to have to make payments under the Standard plan.

[u/Pennylanetitan → u/Pretty_Good_11]

Loser talk

[u/Pretty_Good_11 → u/Pennylanetitan]

🤣🤣🤣

Yes, everyone who screwed around with the interest rate reduction lost. People who want to keep playing games and gambling are certainly free to do so.

But most people who know what they are doing do not take low risk/lower reward gambles, while people here simply cannot resist the urge to try to squeeze the last bit of juice out of absolutely everything. Regardless of little the potential reward as opposed to the cost.

In the case of the interest rate reduction, some gave up hundreds a month ($100 for each $120K owed) for up to 2 years in return for keeping an interest accruing forbearance for a few more months. Real money in return for virtually nothing.

No progress towards any forgiveness, and additional interest owed, just to not have to make payments for a few additional months while waiting for Havens to come riding to their rescue. I find it absolutely hilarious that people here who otherwise have no faith in anything ED or the servicers say or do now, with this, think they will be able to seamlessly move off Standard after being thrown onto it due to blowing a deadline, without being asked to make even a single payment on it.

I understand that's how it's supposed to work. Do people really think that's 1,000,000% guaranteed how it will work when the time comes? If so, wait away. You have nothing to lose. Right?

[u/Pennylanetitan → u/Pretty_Good_11]

Still not it chief

[u/Pretty_Good_11 → u/Pennylanetitan]

Whatever you say, Chief.

[u/Mammoth_Witness2348]

yes you can still apply.

i just had this happen when mohela messed up my recertification. they sent me a processing delay email after i put in the app then failed to process my recert by the cutoff and put me on the standard plan. i immediately called mohela, then i had to call student aid, they gave me a 2 month forbearance pending processing, then i submitted a new IDR app right there on the phone with the agent/associate/whoever. i got another processing delay email from mohela but it only took 3 weeks to get the IDR approved, and my payment went right back to what it was before the hiccup.

[u/WowRedditIsUseful → u/Mammoth_Witness2348]

That's good to hear!

[u/YeaYouReadWhatIWrote]

Try it and see. Go on Studentaid.gov, let it pull your info from the IRS and recertify and pick a new plan. It will either work or not. If not, you'll have to make that Standard Payment. If it works, you're good to go. I say go for it. You got time AND on the website, it says you can change plans at any time. DO IT.

[u/Ok_One_7971]

Oh no. We just applied my sons fed loans for IBR n he is currently in grace period. He graduated in May. 😩 what can we do now? I’m not even sure when reg payment is due

[u/Gnomiish]

Yes. You just need to apply for an IDR plan ASAP and you will be put into a processing forbearance. No payment will be due until they process your new application.

[u/WowRedditIsUseful → u/Gnomiish]

Thank you. I assume this is the same for a variety of situations?

Examples/ Graduating and not doing anything to loan account for >6 months, letting an IDR plan lapse without recertifying

[u/Gnomiish → u/WowRedditIsUseful]

Yes.

Also - when you're in your 6 month grace period, you actually can't apply to put your loans on an IDR plan. You have to wait until they enter repayment (and are thus put on the standard plan) to do so.

Found this out myself when I applied to put my loans on an IDR plan not realizing that 2 of my grad loans were still in their grace period. Didn't find out until my 2nd payment was due (I was getting an email showing the $0 payment for most of my loans and then missed the first email showing the roughly $400 payment for the grad loans). I got it fixed no problem.

[u/Ok_One_7971 → u/Gnomiish]

How did u get it fixed, called them? My son graduated in May n this weekend we applied for IBR But he is still in grave period. Now im worried 😞

[u/Gnomiish → u/Ok_One_7971]

I called Nelnet and the servicer explained the whole needing to wait until your loans are out of the grace period to me. They put me in a retroactive forbearance to get my account in good standing again and I just re-applied for IBR.

It really is a simple process. I would give them a call and I would specifically ask if there are any loans not on the IBR application and when his grace period ends for those loans (i say this as my undergrad and grad loans had different end dates for the grace period).

As long as your son checks his account regularly (at least 1x a month), I promise you that he'll be okay / catch anything before it becomes a bigger issue!

[u/Ok_One_7971 → u/Gnomiish]

Ty so much

[u/Gnomiish → u/Ok_One_7971]

You're very welcome!