I am in the process of entering IDR repayment with my two servicers. However, something is not correct, IMHO. FedLoan is stating that my AGI is also my Discretionary Income (DI). According to the numerous ed.gov websites, IDR plans are to be based upon DI and that DI is equal to my AGI minus 150% of the federal poverty level for my family size and state of residence. I actually called and spoke to a student loans.ed.gov rep (which was so much fun!) who said the information on the site was correct, but that they have no control over what definitions the services use (which begs a whole new series of questions).
So, is FedLoan correct in calculating payment amounts under IDR plans using my AGI instead of the publicly available information available on the various federal sites that state that DI should be used?
May 3, 2014
You are absolutely right about AGI being different from discretionary income. Your definitely for discretionary income is also correct.
That being said, the terminology used by the customer service representative is a pretty low concern. The major issue is whether or not they are calculating your IDR payments correctly. If the calculation is wrong, it is a major issue. If the math checks out, it just means a customer service representative has a terminology issue.
I’d suggest checking out the department of educations loan repayment estimator (found here: https://studentloans.gov/myDirectLoan/repaymentEstimator.action ) That page will let you plug in your loans and your income information to see what payments should be on the various repayment plans. If the numbers you are being given by your servicers match the website results, it means they likely got the math right.
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