IBR Question/Advice

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
Phreaxer

New
Posts: 9
Joined: Thu Oct 09, 2014 3:33 pm

IBR Question/Advice

Postby Phreaxer » Tue Dec 19, 2017 4:26 pm

I just finished school and have a very large balance in student loans. Not just from LS, but from a couple other degrees I previously obtained. I will be taking the bar next year and am currently not working. Because I have used my loan deferment in the past, my loans are due, starting now. It was brought to my attention that I need to request an IBR plan, but I didn't realize there were so many options.

Debt: about $400,000 (all private schools, fed loans though)
Payments: Not really clear yet
Income: Going to be none for the next few months, but should be close to 75k annually by the end of the year.
Plan: Where I need advice.
Important info: I'm single (long-term dating relationship, but unmarried). I have kids and child support to pay (which has been and will be maintained).

What IBR (or other deferment plan) would be best for these numbers?

Nebby

Diamond
Posts: 31197
Joined: Sat Feb 01, 2014 12:23 pm

Re: IBR Question/Advice

Postby Nebby » Tue Dec 19, 2017 4:30 pm

PAYE or REPAYE (if not eligible for PAYE).

Phreaxer

New
Posts: 9
Joined: Thu Oct 09, 2014 3:33 pm

Re: IBR Question/Advice

Postby Phreaxer » Tue Dec 19, 2017 4:36 pm

If I read it properly, I don't qualify for PAYE because I took loans out before 07. REPAYE isn't a bad option either given my situation and numbers though.

Nebby

Diamond
Posts: 31197
Joined: Sat Feb 01, 2014 12:23 pm

Re: IBR Question/Advice

Postby Nebby » Tue Dec 19, 2017 4:54 pm

REPAYE it is!

User avatar
A. Nony Mouse

Diamond
Posts: 29312
Joined: Tue Sep 25, 2012 11:51 am

Re: IBR Question/Advice

Postby A. Nony Mouse » Tue Dec 19, 2017 4:55 pm

Nebby wrote:REPAYE it is!

User avatar
Respondeat_Inferior

New
Posts: 51
Joined: Sun Dec 03, 2017 4:03 am

Re: IBR Question/Advice

Postby Respondeat_Inferior » Tue Dec 19, 2017 10:17 pm

I know this is far down in the future but it's worth thinking about now because you can't very well just uproot yourself in 20 years: If you end up in a career path that doesn't have a reasonable chance of paying that off (and I'm sure you know that's a pretty high number), consider moving to a state like Washington that doesn't have state income tax.

No state income tax means the explosion is smaller when your tax bomb goes off at the point of loan forgiveness.

Phreaxer

New
Posts: 9
Joined: Thu Oct 09, 2014 3:33 pm

Re: IBR Question/Advice

Postby Phreaxer » Wed Dec 20, 2017 2:30 pm

That's a very interesting factor to consider. Yeah, it is a long ways off, but it's good to have stuff like that in mind. Especially if, in my case, it might be a six-figure tax bomb.

Thanks for bringing it up.

btw, I submitted my application for REPAYE. Fingers crossed, hope it works



Return to “Financial Aid�

Who is online

Users browsing this forum: No registered users and 3 guests