Aren’t IBR and IDR the same thing? I’m in IBR already, can you still help me?

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This is one of the most common misconceptions, and one of the most costly. IBR – Income Based Repayment – is one of six different income-driven repayment options. However, IBR has become synonymous with IDR – Income-Driven Repayment.

If you can relieve the patient’s symptoms and improve their condition, one is often not apt to search for additional relief. We have many clients that contact us and are in an IBR repayment plan, and have what they believe to be a very low payment, sometimes as low as $0.

Why would someone that is a $0 IBR become a client? The reason is multifaceted. The way that interest accrues in IBR, one misses interest accrual subsidies that don’t apply. In fact, IBR is applied to virtually all loan types, but these loan types do not qualify for many subsidies and repayment/forgiveness programs. Often clients call us who think they have everything “dialed in,” but are the furthest off track.

We are either able to help your situation or we are not. If we are, it makes sense to become a client. This is not a value proposition. It’s a matter of cash flow and final cost of your degree. If you pay $85 per month and $50,000 total for your education, vs. $450 per month and $320,000 total, and the cost is under $1,000 to accomplish that, it would make financial sense.

If we are unable to reduce either the monthly payment, interest accrual or over all expenditure of your student loans, it would not make sense to become a client.