Comments on: The Dangers of Switching to REPAYE

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Sat, 18 May 2024 19:02:09 +0000

In reply to Karina Irene. Karina, REPAYE was initially created about 10 years ago to help borrowers who were not eligible for PAYE. Even though one is called Pay As You Earn and the other is called Revised Pay As You Earn, they are very different plans, and REPAYE didn't actually replace PAYE. However, SAVE will replace REPAYE. You are also right about the conoslidation clock. If you have FFEL loans or you have loans with different timelines toward forgiveness, now is a great opportunity to take advantage of the temporary program, thanks to the extension of the deadline.

By: Karina Irene

Karina Irene — Sat, 18 May 2024 16:03:46 +0000

So does REPAYE replace PAYE or are they two seperate things because the Laon simulator still shows both? also until June 30 you can apply to have your loans consolidated with no reset to your clock!

By: The Student Loan Sherpa

The Student Loan Sherpa — Mon, 30 Dec 2019 10:10:29 +0000

In reply to april. Thanks for commenting April... you make a really good point. I'll update the language so that it is crystal clear per your suggestion.

By: april

april — Sat, 28 Dec 2019 00:26:19 +0000

The part about the loan ‘clocks’ is corrected (struck out) in section 2, but not in section 3? switching from IBR to REPAYE back to IBR shouldn’t be an issue (unless, as mentioned in the comments, the loans were consolidated). Both IBR and REPAYE laws mention they count the payments under either of those plans.

By: The Student Loan Sherpa

The Student Loan Sherpa — Fri, 02 Feb 2018 17:26:00 +0000

In reply to Adam.

REPAYE was definitely created via executive order and not an act of Congress. As for its presence in the CFR, and let me add that I’m not expert on Administrative law, but executive orders also appear in the CFR. This link may help: https://www.archives.gov/federal-register/executive-orders/about.html

By: Adam

Adam — Thu, 01 Feb 2018 23:15:00 +0000

If REPAYE is part of the CFR (34 CFR 685.209), why would it be subject to elimination by any president’s executive order? Is it not codified in the CFR, and thus an act of Congress would be required to modify or eliminate it?

By: Josh Gordon

Josh Gordon — Fri, 11 Aug 2017 18:37:00 +0000

In reply to The Student Loan Sherpa. Thanks for the response. By now I have completed my research and it is indeed final: the source of the confusion out there both in the blogosphere and with the customer service representatives is exactly that. A lot of people need to consolidate their loan, in which case the clock resets. If they don't need to consolidate the loan, the clock does not reset.

By: The Student Loan Sherpa

The Student Loan Sherpa — Fri, 11 Aug 2017 18:07:00 +0000

In reply to Josh Gordon. That is a very good point Josh. Consolidation can dramatically change your loan situation. We normally see this issue with people who are working towards Public Service Loan Forgiveness. If you consolidate the loans to get certain loans eligible, the new consolidated loan starts from the beginning.

By: Josh Gordon

Josh Gordon — Thu, 10 Aug 2017 21:02:00 +0000

Disclaimer that I don’t have the final answer yet: I think whether the clock resets or not depends on whether your loans are already eligible for the REPAYE program. If they need to be consolidated first, the clock might actually reset. I’m not sure of this yet, but I have been conveyed this information by multiple customer service representatives. On the other hand, if your loans don’t need to be consolidated and are already direct and therefore qualify for REPAYE, the clock does not reset.

By: Ashley Madison

Ashley Madison — Fri, 28 Apr 2017 20:24:00 +0000

In reply to Hazel. Michael, you have a duty to either take this down, fix the information, or verify the information. Thousands if not millions of people are making financial decisions based on this page.