Advice on Student Loan Income Based Repayment for Married Couple Student Loans |
- Advice on Student Loan Income Based Repayment for Married Couple
- The college experience
- I decided to buy an investment property instead of paying off my student loans
- Refinancing sanity check
- Lets get real: What are the situations where doing 2 years are Community College would NOT be ideal?
- Experian Lowering Score
- Question on 20/25 year loan forgiveness.
- Paying on student loans with career in academia
- Any hope for govt forgiving federal loans in general? Or should I consolidate?
- Should I refinance my student loans?
- What's the best way for me to pay off my student loan debt?
- Loans not consolidated
- Fedloan to Edfinancial transfer delay
- MPN lost in loan transfer. Do I still need to repay my student
| Advice on Student Loan Income Based Repayment for Married Couple Posted: 24 Feb 2022 09:07 AM PST Need help understanding income based repayment as a married couple- having a hard time weighing pros and cons of filing jointly or separately. Please, no comments on loan amounts, obviously we made a choice when we went to school. Income for 2021: myself $200k, my spouse $90k Student loan balance: myself $120k, my spouse $250k; both in PAYE My loans will likely be paid off in ~10-15 years on PAYE, however my spouse will likely require student loan forgiveness. Married filing jointly: Discretionary income is based off of combined income and then 10% will be calculated. Each of us will pay 50% of that amount towards our student loans. The problem with this is that less will be paid towards my debt (which I intend to repay) and more will be paid toward my spouse's debt (which we do not intend to repay). However, the amount that is paid towards student loans in total is similiar on a monthly basis. Married filing separately: Lose tax benefits when filing separately. Child tax credit is reduced by 50%. Based on the PAYE plan, I will pay more towards my loan balance and my spouse will pay less; I will be on track to pay off my loans and my spouse will require student loan forgiveness My CPA does not specialize in student loans but is very adamant that he believes the tax savings of filing jointly outweigh filing separately, however he has not presented me with enough evidence. Maybe we need to get a financial planner, but looking for a solution so I can file taxes for 2021 [link] [comments] |
| Posted: 24 Feb 2022 06:58 AM PST I see so many comments in this subreddit that hate on private universities that cost more, and lay out this cookie-cutter plan on going to a community college first and then transferring to a state school in the name of saving money and cutting down loans. From a pure financial standpoint, yes that saves money. But taking this route is definitely not for everyone, and I have to speak on it. I went to a private university. The cost when I first arrived was about $60K a year in tuition. Of course that doesn't include room + board or other miscellaneous costs, so it may be closer to $70K total. I graduated in four years. I came out with ~$30K in student loans. And I paid them off in five years. It seems on the surface that doing anything other than the "community college transfer" route is just a stupid financial move, and that could not be further from the truth for the following reasons: A) The college experience Some of us don't just want the education. We like being around people who are our age, being within walking distance of our friends. Going to parties on the weekends. Joining social clubs that help us discover things about ourselves. Being away from home and our parents to have freedom, etc. This was every bit as important to me as getting a good education, and I have no regrets. B) Networking We all know that applying on a job board where hundreds of other people are throwing in the same application is a crapshoot. Almost every job I've gotten, including internships, was because I could network. I'm not saying that you have to go to a fancy college for someone to notice you, but you have to get your name known to someone who can help you. And a lot of companies will be on the campuses of schools that have given them a good track record with employees. Some of those schools have higher tuition. But if that networking opportunity leads to higher starting salary out of college, then your debt becomes manageable and you don't have to drown in it. C) Grants/Endorsements I can only speak for private universities, so there may be an argument on this regarding state schools that I can understand. Sure, my tuition was ~$60K, but around 70% was covered through a large endorsement by a big F500 company, and another portion was covered through grants that I got as a need-based student. So the amount of money that my parents had to pay was definitely not $60K a year. Now I am only talking about undergraduate experience here, so I can't hold an argument for graduate degrees. But everyone here seems to focus only on the worst case scenarios of graduating with six figures in debt over university and saying "I made the wrong decision", and casually forgetting that for the majority of us, it's not like that. Going to college is so much more than just about what's cost effective, and I just want people to remember that. I don't believe anyone should have $100K+ in debt just because they wanted "the experience" or "the networking", but there are other ways to be cost effective than to just go to no-name community college and then transfer to state school. P.S. As I close this rant, there's one more thing I wanted to point out. I'm a social extrovert, so having all these things was important to me and made my experience worthwhile. If someone is perfectly content with just going to class and going back home to study and nothing else, then that's fine and they should do what's best for them. [link] [comments] |
| I decided to buy an investment property instead of paying off my student loans Posted: 23 Feb 2022 06:50 PM PST Entering 2020, I had ~41k in federal student loans after graduating in 2013. I had already saved up a lot in the previous 2 years, but then came the pandemic and payment pause. Since my loans were federal, I got to take full advantage. By the end of 2020, I'd saved up enough money to pay off all of my student loans. Like a lot of people in my shoes, I didn't pay it all off immediately because I thought there was a chance of some forgiveness happening since the change in office. So while waiting in limbo, I saved more and paid off all my credit cards. My car was bought used so I didn't have a car note. By July of 2021, I was debt free except for my student loans. But by this time, I started to take investing in real estate seriously. Something I thought about in the past but figured it was unachievable. After doing alot of research, numbers crunching, and soul searching, I decided to jump in and invest. Fast forward to January 2022, and I have closed on my first investment property, essentially using all the money set aside for my student loans, minus my emergency fund. The way I see it, if I spent the money on student loans then the money is gone and I get nothing in return except no monthly payment. If I buy an investment property, doing my due diligence on the numbers, then I have an income producing asset under control that not only generates passive monthly income, but also gains equity. So with the passive monthly income plus the equity gained by the tenants paying rent, over the next 2 years I will have enough to pay off my student loans or perhaps buy another property if I so chose by saving the income and refinancing to pull out the equity. Also you just never know what a desperate regime might do to stay in power and may very well extend the pause or provide some forgiveness. Plus my monthly student loan payment was only $329 a month which is very manageable. Not saying everyone should do this or even if I made the right decision, but I'm taking a risk. Wish me luck! [link] [comments] |
| Posted: 23 Feb 2022 08:55 PM PST Hi everyone, Could use a quick sanity check to make sure I'm not missing anything, will do my best to give an accurate summary. I'm pretty sure there's almost no scenario where I would want to keep my federal student loans. I currently have about ~160k in student debt from grad school, which I finished spring 2019. My original plan was to go on a income based repayment plan and use PSLF to get it forgiven after 10 years. I only made about 9 months of these pretty low payments before I got a job offer in the private sector that I couldn't turn down. I haven't made any payments since the covid forbearance while I got all my other finances in order, bought a house, etc. Current situation: Still have about 160k in debt since I'm not even sure my original IBR was covering interest. 160k coming from four different loans ranging from 6-7.6% interest rate. Last year earned 130k in cash / ~20k in equity. Estimated cash compensation this year is about 180k and 25k in equity. Standard repayment at this point looks like it would be ~$1850, paying in total $220k over the next 9 years. IBR has me paying ~1k now but estimated ~263k total (I think assuming 5% salary growth which is probably low) over the next 15 years with 0 forgiveness. ICR has me at $2.2k a month over the next 8 years, paying 205k. Shouldn't I just refinance with a private lender and try to get my interest rate cut in half? Credit score is good, 760 ish. Is there anything beneficial about the standard repayment or ICR vs. refinancing? Unlikely at this point that I'll go back to the public sector in the next 5 years while growth in my current role is promising. Last question, if I refinance, should I do it now before interest rate hikes? Or just take advantage of the last two months of forbearance? Thanks in advance for any thoughts, just want to be doubly sure I'm not making a terrible mistake. [link] [comments] |
| Lets get real: What are the situations where doing 2 years are Community College would NOT be ideal? Posted: 23 Feb 2022 01:00 PM PST I'm racking my brain here, but at this point what is the point of doing a 4 years at a 4 year school? [link] [comments] |
| Posted: 23 Feb 2022 11:13 PM PST My credit score according to Experian was in the 690s (700's according to my credit card app) as of two days ago, today I got a notification of a changed credit score. My credit score dropped 27 points. I noticed my student loans were removed, it says I owe $0. But it says the accounts were closed in December. It also has a deduction of the student loan amount under 'Total Debt.' Is it possible for the system to just start catching up to itself? I didn't even my loans were removed. I also would think the loan would fall off in January not February. What happens if the loans are added back to my credit report, will my credit report go down further? Will my other score be affected? I checked Credit Karma and see that the loans have been removed from those sights but I don't see a dip in my credit score. Should I expect one? My credit score actually when you significantly two weeks ago, [link] [comments] |
| Question on 20/25 year loan forgiveness. Posted: 23 Feb 2022 05:01 PM PST I took out federal loans for school back in the early 90s. I then went back to school around 2008 for 2 years and consolidated my loans in 2013. Naviant is telling me my loans will be forgiven in 2033. Did consolidating the loans push the 20/25 year forgiveness to 20 years after the consolidation? Or should some of the loans be forgiven from when I first started paying back in 1992? These are all federally consolidated loans. [link] [comments] |
| Paying on student loans with career in academia Posted: 23 Feb 2022 04:55 PM PST I'm gonna graduate from an Ivy with $60,000+ in student loans (some federal but mostly private loans). I want to go on to do a (funded) PhD and have a career in academia and do research in ecology and forest ecosystem science. Is this a realistic career for my amount of debt? Have I gotten myself into a hole of debt I won't be able to get out of? I'm honestly just scared for my future financial state and want some guidance or reassurance that i'm not screwed. My long term bf is also planning on a similar career in academia so marrying rich is not an option haha. (he has no student loan debt thankfully) [link] [comments] |
| Any hope for govt forgiving federal loans in general? Or should I consolidate? Posted: 23 Feb 2022 08:04 PM PST Hi all, My husband is wanting me to consolidate all my loans. I have both private and federal loans. I confirmed with SoFi who stated that if I consolidate my federal loans, and afterward the government decides to forgive any federal loans, or forgive a portion of federal loans, SoFi stated they will not honor that. This leads me to doubt whether I should consolidate my federal loans, or if I should just consolidate my private loans. I know it's hard to predict whether our government would ever in the future forgive federal loans, but I wanted to ask for some opinions. Thank you! [link] [comments] |
| Should I refinance my student loans? Posted: 23 Feb 2022 03:41 PM PST So I have about 63k in total of student loans with several of them around 6% interest rate. I am still new to all this as I recently graduated and am barely looking at my finances so forgive me if I sound stupid. I know interest rates don't go into effect until May 2022 of this year. I'm just wondering should I consider re-financing my loans soon or should I wait it out? Trying to figure out what the best option for me is. Thanks. [link] [comments] |
| What's the best way for me to pay off my student loan debt? Posted: 23 Feb 2022 05:54 PM PST Hello Everyone, I currently have a student loan amount of $6,598.13 with an interest rate of 8.375%. Is there any way for me to get some of this removed/cleared fast, etc. ? Any and all advice is highly appreciated. [link] [comments] |
| Posted: 23 Feb 2022 04:44 PM PST I'm going on 6 years active duty, and probably gonna enlist for another 4. Are there any loop holes in order to qualify for PSLF, if my loans are not consolidated? Or am I SOL? [link] [comments] |
| Fedloan to Edfinancial transfer delay Posted: 23 Feb 2022 02:51 PM PST I was notified last month that my loans would be transferred from Fedloan to Edfinancial on Feb. 4th. My file still hasn't been uploaded to Edfinancial. Phone recording estimated 2 weeks and I'm now on week 4. Curious if this the average and I should be patient? Or, is there a problem? [link] [comments] |
| MPN lost in loan transfer. Do I still need to repay my student Posted: 23 Feb 2022 02:09 PM PST Just called my loan provider aidvantage and they couldn't provide me with a copy of my master promissory note after my loans got transferred to them from navient. Does this mean I don't have to pay my student loans? Can I challenge them to drop the loan? How do I go about it? [link] [comments] |
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