Comments on: Income-Based Repayment for Student Loans http://financefreelancelife.com/2009/07/03/income-based-repayment-for-student-loans/ Fri, 19 Mar 2010 13:56:41 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Weekly Round-Up: The ‘Poor Me’ Edition — Almost Frugal- a frugal blog http://financefreelancelife.com/2009/07/03/income-based-repayment-for-student-loans/#comment-50193 Weekly Round-Up: The ‘Poor Me’ Edition — Almost Frugal- a frugal blog Sun, 19 Jul 2009 14:01:25 +0000 http://financefreelancelife.com/?p=1446#comment-50193 [...] Income-Based Repayment for Student Loans @ MrsMicah [...] [...] Income-Based Repayment for Student Loans @ MrsMicah [...]

]]> By: Stephanie PTY http://financefreelancelife.com/2009/07/03/income-based-repayment-for-student-loans/#comment-49450 Stephanie PTY Wed, 08 Jul 2009 19:52:42 +0000 http://financefreelancelife.com/?p=1446#comment-49450 I've been taking a close look at IBR, but I've decided it's probably not for me. Although there's a good chance I won't make a lot of money during my lifetime (in which case, it would benefit me a lot!), there's a downside: there's also a chance I will marry someone who makes quite a bit more than I do. IBR is based on family income, which means my payments would actually shoot up if I got married to someone pulling in good money. And if I marry the guy I'm currently dating? He's said "you're on the hook for your own student loans, no matter what." So, I have to pay them by myself, but my payments would shoot up due to being married to him. Argh, no thanks! I'll stick with the payment plan I have now. <abbr><em>Stephanie PTY’s last blog post: <a href="http://feedproxy.google.com/~r/PoorerThanYou/~3/VTR10zgj_As/" rel="nofollow">Erasing Negative Credit History: 5 Strategies You May Not Have Heard About</a></abbr></em> I’ve been taking a close look at IBR, but I’ve decided it’s probably not for me. Although there’s a good chance I won’t make a lot of money during my lifetime (in which case, it would benefit me a lot!), there’s a downside: there’s also a chance I will marry someone who makes quite a bit more than I do. IBR is based on family income, which means my payments would actually shoot up if I got married to someone pulling in good money.

And if I marry the guy I’m currently dating? He’s said “you’re on the hook for your own student loans, no matter what.” So, I have to pay them by myself, but my payments would shoot up due to being married to him. Argh, no thanks! I’ll stick with the payment plan I have now.

Stephanie PTY’s last blog post: Erasing Negative Credit History: 5 Strategies You May Not Have Heard About

]]> By: Sunday Money Roundup - Taking A Short Break Edition. | My Two Dollars http://financefreelancelife.com/2009/07/03/income-based-repayment-for-student-loans/#comment-49231 Sunday Money Roundup - Taking A Short Break Edition. | My Two Dollars Sun, 05 Jul 2009 13:30:54 +0000 http://financefreelancelife.com/?p=1446#comment-49231 [...] Mrs. Micah talks about the new income-based student loan payment plans. [...] [...] Mrs. Micah talks about the new income-based student loan payment plans. [...]

]]> By: vicki http://financefreelancelife.com/2009/07/03/income-based-repayment-for-student-loans/#comment-49154 vicki Fri, 03 Jul 2009 21:31:57 +0000 http://financefreelancelife.com/?p=1446#comment-49154 There is one other disadvantage (not mentioned on the Department of Education site) in this <a href="http://www.collegeloanconsultant.com/monthly-payment-formula.html" rel="nofollow">monthly payment formula</a>: When the loan is forgiven (with all the added interest that has accrued) you have to pay income taxes on that amount, for the year it is forgiven. In other words your income for that year will be your normal agi plus the amount that was forgiven. How would you like to pay taxes on an income of $100,000, when you only earned $35,000? <abbr><em>vicki’s last blog post: <a href="http://www.collegeloanconsultant.com/monthly-payment-formula.html" rel="nofollow">Monthly Payment Formula for Student Loan Repayment Program</a></abbr></em> There is one other disadvantage (not mentioned on the Department of Education site) in this monthly payment formula: When the loan is forgiven (with all the added interest that has accrued) you have to pay income taxes on that amount, for the year it is forgiven. In other words your income for that year will be your normal agi plus the amount that was forgiven. How would you like to pay taxes on an income of $100,000, when you only earned $35,000?

vicki’s last blog post: Monthly Payment Formula for Student Loan Repayment Program

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