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October 08, 2009


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Drop down menus are the least of IBR's problems. Any computer literate college grad will track down IBR and apply for it if they're interested. They are digging deeper and finding that trading Sallie Mae's collection thugs for the IRS collection division is a truly frightening prospect. It is becoming more and more obvious that the paid "inside the beltway" advocates who are supposed to be lobbying for real reforms that favor students are: a)full of themselves; b)ineffective; and, c)most of the time are only getting it half right.


So they had 24 months to get IBR in place and its still not working correctly their excuse is getting ready for elimination of FFEL? I wonder what the conversion to Direct will look like to parent and student taxpayers 24 months from now?


It is unclear why this program feature was even needed. Congress should have just looked at the experience of ICR over the years and changed the features of the ICR plan based on what worked and what didn't work since 1996. For example, expand income eligibility window, reduce the repayment term, reduces the number/frequency of forms (IRS consent and income forms) filed, and eliminate the tax on the write-off. IBR seems to be "change for change's sake," particularly if FFELP is phasing out. Members of Congress seem to lean towards "creating something new" rather than fixing old stuff that needs fixing. Apparently no one wants to run for re-election saying they fixed something that someone else broke 15 years ago. They want something brand-new with their name on it. Thus they provide these unfunded mandates and we are surprised when mucho bugs arise in the process. If IBR is not repealed, then technical glitches are the least of the problems. Several years down the road there will be hearings on false income info provided by thousands of borrowers, loan holders and guarantors; there is no verification, unlike ICR. Historically the honor system doesn't work. "Trust, yet verify."


Am I missing something here? ACS bid protests have been denied, they won't be servicing any new DL volume. I doubt very much that ACS is busy "expanding."


ACS had to be prepared for the possibility that thousands of schools would switch to DL in July 2008 or July 2009. Imagine the loud criticisms if the schools all switched but there was insufficient capacity to book all the new loans?

Donny Dollar

I submitted the IBR application that I tracked down after considerable digging through multiple web pages. This was submitted months ago. Today (10/26/09) I received a letter that stated:

-------------------- [BEGIN LETTER] ---------------------
Dear Borrower,

We have received your Income-Based Repayment application. We are unable to approve your application for the following reasons:

Other: Please submit an ACS IBR application form in order to qualify for the IBR.

If you have further questions or concerns, please feel free to call our offices Monday through Friday 8:00 am to 11:00 pm est at (800) 835-4611 or visit our web site at www.acs-education.com


Processing Specialist
------------------------ [END OF LETTER] --------------

So many questions about this. 1) Why do they not direct you to the specific address on their site to find the form? Despite looking throughout the site, it is not there to my knowledge. 1a) Why is there no search option?

2) In what way is this letter even remotely helpful? Seriously? That is what you have to say? Thanks for nothing.

3) Why would ACS have a different form than the one put out by the Feds? Isn't this all one program?

4) College Loan Corp, to whom I sent another inquiry, replied with similar circular logic, stating that I should call ACS or the Department of Education.

Methinks that no one wants this program to work!

Any thoughts? Any successes? Anyone know how to get this damn thing through??

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