Episode 28 of Debt Payoff with Fexingo dives into a costly but often overlooked trap in income-driven repayment plans: recertification errors. Lucas and Luna walk through how a single missed or mishandled annual recertification can pause progress toward forgiveness, capitalize unpaid interest, and even restart the 20–25 year clock. They explain the difference between recertification and consolidation, highlight the role of servicers like Mohela and Nelnet, and share a concrete example of a borrower on REPAYE/SAVE who lost three years of credit because of a two-week delay. The hosts also break down what to do if you suspect an error, including how to request a retroactive forbearance correction. If you're pursuing Public Service Loan Forgiveness or IDR forgiveness, this episode could save you years of wasted payments.
#StudentLoans #IncomeDrivenRepayment #IDR #REPAYE #SAVEPlan #PSLF #LoanForgiveness #Recertification #Mohela #Nelnet #ServicingErrors #Capitalization #ForgivenessClock #DebtPayoff #Finance #FexingoBusiness #BusinessPodcast #PersonalFinance
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