Student loan payments: get advice and actual numbers here Forum

[Anonymous User]

PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?

You have the option of filing jointly or separetely taxes for PAYE. You MUST file joint taxes for Repaye.

And that really sucks. For those of us not eligible for PAYE, we have to choose between being married and paying several hundred dollars more on IBR or remaining unmarried to save money.

[Pokemon]

PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?

You have the option of filing jointly or separetely taxes for PAYE. You MUST file joint taxes for Repaye.

And that really sucks. For those of us not eligible for PAYE, we have to choose between being married and paying several hundred dollars more on IBR or remaining unmarried to save money.

A blessing in disguise.

[A. Nony Mouse]

I'm not sure it's a huge difference in the end, since filing separately means you'll pay more in taxes (although I suppose it depends on what your spouse makes, too).

[Anonymous User]

I'm not sure it's a huge difference in the end, since filing separately means you'll pay more in taxes (although I suppose it depends on what your spouse makes, too).

I will be making $115k in government with a spouse that makes $60k in the private sector. He has no debt, I have $220k. Haven't done the full calculations, but I imagine IBR plus filing separately (not eligible for PAYE) will save a significant amount of money.

[Johann]

PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?

You have the option of filing jointly or separetely taxes for PAYE. You MUST file joint taxes for Repaye.

And that really sucks. For those of us not eligible for PAYE, we have to choose between being married and paying several hundred dollars more on IBR or remaining unmarried to save money.

You should get a civil union if you want the right of marriage since most progressive states still provide pretty favorable civil union treatment that closely resembles marriage.

[Anonymous User]

PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?

You have the option of filing jointly or separetely taxes for PAYE. You MUST file joint taxes for Repaye.

And that really sucks. For those of us not eligible for PAYE, we have to choose between being married and paying several hundred dollars more on IBR or remaining unmarried to save money.

You should get a civil union if you want the right of marriage since most progressive states still provide pretty favorable civil union treatment that closely resembles marriage.

Hmm I guess I'd have to look into this... state is Califorina. Biggest deal obviously is having him on my government health insurance. Federal government though, they may not recognize a state civil union as a "spouse" for benefits?

[Johann]

PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?

You have the option of filing jointly or separetely taxes for PAYE. You MUST file joint taxes for Repaye.

And that really sucks. For those of us not eligible for PAYE, we have to choose between being married and paying several hundred dollars more on IBR or remaining unmarried to save money.

You should get a civil union if you want the right of marriage since most progressive states still provide pretty favorable civil union treatment that closely resembles marriage.

Hmm I guess I'd have to look into this... state is Califorina. Biggest deal obviously is having him on my government health insurance. Federal government though, they may not recognize a state civil union as a "spouse" for benefits?

Yea I think civil unions work for most insurances. Marriages are "state" marriages as well. So the insurance clearly recognizes state relationships since there is no such thing as a federal relationship.

[quirky]

If you are eligible for PAYE is there ever a reason to use IBR?

[Veil of Ignorance]

I'm four years out and did not get biglaw. Through a combo of scholarships and savings I only took out about $100k in loans to attend my T6, so last year when I got a significant raise at my JD-preferred job I started paying it down.

Current loan balance 87k
Salary is about 75k
I was doing $300-500/month on IBR, then making windfall payments every few months
Just approved for a CB refi, 10 year fixed at 4.5%, and monthly will be around $940
Also pay about $1600/mo in mortgage + home costs. (Parents paid deposit on my condo)

I will forever be kicking myself for not taking a full ride at a lower ranked school. But I missed the biglaw ship so... who knows how I would feel if I were enjoying that 4th year biglaw cash.

Why did you not get biglaw out of a T6?

[cheaptilts]

I'm four years out and did not get biglaw. Through a combo of scholarships and savings I only took out about $100k in loans to attend my T6, so last year when I got a significant raise at my JD-preferred job I started paying it down.

Current loan balance 87k
Salary is about 75k
I was doing $300-500/month on IBR, then making windfall payments every few months
Just approved for a CB refi, 10 year fixed at 4.5%, and monthly will be around $940
Also pay about $1600/mo in mortgage + home costs. (Parents paid deposit on my condo)

I will forever be kicking myself for not taking a full ride at a lower ranked school. But I missed the biglaw ship so... who knows how I would feel if I were enjoying that 4th year biglaw cash.

Why did you not get biglaw out of a T6?

As an 0L, You shouldn't be posting in here.

[A. Nony Mouse]

^ true.

Also, every year there are people from the T6 posting about not getting biglaw. (I'm not claiming a lot, but it definitely happens.) While I get that people who haven't yet gone through OCI want to know how to avoid striking out, it always seems a little tactless to me to immediately ask someone about why it happened. They're not here to provide lessons to you. (At least, not in a thread about student loans. There are other threads for talking about how not to strike out.)

[Johann]

If you are eligible for PAYE is there ever a reason to use IBR?

i dont think so. but there may be a reason to RePaye

[quirky]

If you are eligible for PAYE is there ever a reason to use IBR?

i dont think so. but there may be a reason to RePaye

Please elaborate? I thought PAYE and REPAYE were the same except for the eligibility of borrowers based on when their loans were taken out and ability to file married filing separately?

[Johann]

If you are eligible for PAYE is there ever a reason to use IBR?

i dont think so. but there may be a reason to RePaye

Please elaborate? I thought PAYE and REPAYE were the same except for the eligibility of borrowers based on when their loans were taken out and ability to file married filing separately?

there is a slight difference with repaye. under repaye the govt subsidizes half of the unpaid interest. i.e. if you are accruing 1,000 of interest a month and your payment is $200; the government pays 400 of interest so only 400 of interest accumulates for the next month (this is only for a limited time of the loan repayment).

http://futureproofmd.com/blog/2015/10/2 ... arn-repaye

[ballouttacontrol]

If you are eligible for PAYE is there ever a reason to use IBR?

i dont think so. but there may be a reason to RePaye

Please elaborate? I thought PAYE and REPAYE were the same except for the eligibility of borrowers based on when their loans were taken out and ability to file married filing separately?

1. government pays 50% of your unpaid interest in REPAYE

2. PAYE has a maximum payment equal to what it would be under the 10-year plan, and if u cross that, ur interest capitalizes. REPAYE has no limit and interest only capitalizes for REPAYE when u leave REPAYE

3. REPAYE is 25 years of qualifying payments vs. 20 for PAYE (but at like 19 years u could just switch from REPAYE to PAYE)

4. Married stuff

[quirky]

If you are eligible for PAYE is there ever a reason to use IBR?

i dont think so. but there may be a reason to RePaye

Please elaborate? I thought PAYE and REPAYE were the same except for the eligibility of borrowers based on when their loans were taken out and ability to file married filing separately?

1. government pays 50% of your unpaid interest in REPAYE

2. PAYE has a maximum payment equal to what it would be under the 10-year plan, and if u cross that, ur interest capitalizes. REPAYE has no limit and interest only capitalizes for REPAYE when u leave REPAYE

3. REPAYE is 25 years of qualifying payments vs. 20 for PAYE (but at like 19 years u could just switch from REPAYE to PAYE)

4. Married stuff

Does married stuff just mean the tax filing jointly limitation? Or is there something else? Because totally married over here, and spouse did not think it was funny when I said we should get "divorced" so my student loan payment would be lower.

[Anonymous User]

If you are on REPAYE and overpay, will it go towards your principal and next month's payment? Not talking about payments for purposes of 25-year forgiveness, just what you'd owe the next month after overpaying.

[Veil of Ignorance]

^ true.

Also, every year there are people from the T6 posting about not getting biglaw. (I'm not claiming a lot, but it definitely happens.) While I get that people who haven't yet gone through OCI want to know how to avoid striking out, it always seems a little tactless to me to immediately ask someone about why it happened. They're not here to provide lessons to you. (At least, not in a thread about student loans. There are other threads for talking about how not to strike out.)

Ahhh I made a mistake! I'll see myself out.

[ballouttacontrol]

If you are on REPAYE and overpay, will it go towards your principal and next month's payment? Not talking about payments for purposes of 25-year forgiveness, just what you'd owe the next month after overpaying.

depends on provider. some ppl have been fucked b/c they assumed it would go towards principle, but some providers default to crediting it to your next month bill. I'd recommend to call and clarify your default before overpaying

[Anonymous User]

^ true.

Also, every year there are people from the T6 posting about not getting biglaw. (I'm not claiming a lot, but it definitely happens.) While I get that people who haven't yet gone through OCI want to know how to avoid striking out, it always seems a little tactless to me to immediately ask someone about why it happened. They're not here to provide lessons to you. (At least, not in a thread about student loans. There are other threads for talking about how not to strike out.)

A lot of people come out of T6 without biglaw. And a fair amount come out claiming they work for biglaw because they work for a private firm even though they are paid less than some of their public working classmates.
-a T6 grad who isn't in biglaw

[courtneylove]

Why did you not get biglaw out of a T6?

You can message me for more details. Don't drink the kool-aid little 0L. I am one of many in my class who did not get biglaw.

[Nebby]

Why did you not get biglaw out of a T6?

You can message me for more details. Don't drink the kool-aid little 0L. I am one of many in my class who did not get biglaw.

To be fair you graduated during a rough time (I'm guessing c/o '13?). Glad everything worked out!

[Pokemon]

Why did you not get biglaw out of a T6?

You can message me for more details. Don't drink the kool-aid little 0L. I am one of many in my class who did not get biglaw.

To be fair you graduated during a rough time (I'm guessing c/o '13?). Glad everything worked out!

Not sure what you mean by "to be fair." Plenty of people graduate top law schools without a job in hand or a biglaw job if they were aiming for that and acting like everyone has one really hurts your classmates who might be struggling.

[Nebby]

Not sure what you mean by "to be fair." Plenty of people graduate top law schools without a job in hand or a biglaw job if they were aiming for that and acting like everyone has one really hurts your classmates who might be struggling.

I was adding context pokemAn

[Johann]

I'm not disputing that PAYE exists, you TTT moron. I'm disputing that "lol, just plan on loan forgiveness" is any kind of reasonable strategy.

Also, I'm 99% confident that I'm older than you. I've taken out loans for school and switched careers a couple different times now. So save your old man tirade for someone else and have fun with your excel sheets. Your advice is wrong and dumb.

saw that you have loans from pre law school. you should really read this thread because it sounds like youre mismanaging your finances. happy to help if you have any questions. (sorry if im overstepping my boundaries but people making financial mistakes is a really big peeve of mine).