Again that’s right in theory and what the banks report, however, individual law suits uncovered intentional efforts by the banks internally to force deferments and resetting the clock on IBR loan payers. Literally bank communications turned over in discovery on a number of lawsuits show instruction not to process annual financials, place the students in forebearance for a month, then process the documents so the clock reset.
Case in point the banks at no point inform loan holders when the IBR discharge clocks reset (sure student knew they were in forbearance for a month every year, but in these cases the students timely submitted the documents and students have no control over the bank processing times), it’s only when the students went for the discharge and were the students informed there clocks reset annually. Further bank communications showed this was also intentionally done so over the years the banks counted on the student losing their records and proof they timely submitted their annual financials.
And I’d argue that 98% (it’s actually 99.5%) of loan holders being denied discharge in IBR programs is proof the program is broken, but again the individual lawsuits against the banks/loan services broke this wide open. Then again we don’t need to look at the individual lawsuits either multiple state attorney generals have brought charges against the largest loan servicer for these acts and worse (continuing to collect on loans that were actually discharged), still it doesn’t seem that will help these students (like billion dollar fines against the banks didn’t help homeowners post 2008).