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Paying off student loans- Income Contingent Repayment
Posted on 10/27/14 at 6:04 pm
Posted on 10/27/14 at 6:04 pm
Anyone ever had success with income contingent repayment plan through federal aid? I've been reading about the pros and cons, just wondering if any of the OT had any experience with this payment plan?
This post was edited on 10/27/14 at 6:06 pm
5
Posted on 10/27/14 at 6:06 pm to mailman
Yes, lowered my bills from around 400 a month to 100 a month for a year. Then I started my current job and it jumped back up to 350
Posted on 10/27/14 at 6:16 pm to mailman
Lowered mine from 600 to 250
Posted on 10/27/14 at 6:27 pm to mailman
I don't see the benefit of ICR over IBR or Pay As You Earn
Posted on 10/27/14 at 6:31 pm to Teddy Ruxpin
quote:
I don't see the benefit of ICR over IBR or Pay As You Earn
In the long run, doesn't it reduce the loan interest?
Posted on 10/27/14 at 7:20 pm to mailman
IBR goes something like..
You pay 10% of your income until 20-30 years or until it goes away.
If you haven't paid it off by the end the rest of your money gets wiped clean. Unfortunately, they still tax you on it.
So.. If you had like 150k+ in loans and never paid it off completely it most likely climbed to a large sum over the years due to interest and now you will have to pay the taxes on it in one lump sum after it gets "wiped clean"
If your loan is only like 40k or something though you should probably just pay that off with your 1st paycheck
You pay 10% of your income until 20-30 years or until it goes away.
If you haven't paid it off by the end the rest of your money gets wiped clean. Unfortunately, they still tax you on it.
So.. If you had like 150k+ in loans and never paid it off completely it most likely climbed to a large sum over the years due to interest and now you will have to pay the taxes on it in one lump sum after it gets "wiped clean"
If your loan is only like 40k or something though you should probably just pay that off with your 1st paycheck
Posted on 10/27/14 at 7:34 pm to mailman
IBR/ICR works best if you have a public sector job, remaining balance gets wiped off after 10 years.
Posted on 10/27/14 at 8:04 pm to Wally Sparks
(no message)
This post was edited on 12/20/18 at 5:36 pm
Posted on 10/27/14 at 8:24 pm to mailman
I haven't looked into this in awhile, but it's strictly for federal loans correct? Not private?
Posted on 10/27/14 at 8:37 pm to gingerkittie
quote:
Never had to pay a penny back because I worked as a teacher and a librarian.
How much does one take out in loans to become a librarian?
Posted on 10/27/14 at 8:39 pm to Starchild
Yes. I'm on the plan now
Posted on 10/27/14 at 8:42 pm to Dr. Shultz
quote:
If your loan is only like 40k or something though you should probably just pay that off with your 1st paycheck
After using 40k of your first ever paycheck, what do you do with the other 60k?
Posted on 10/27/14 at 8:56 pm to The Easter Bunny
(no message)
This post was edited on 12/20/18 at 5:35 pm
Posted on 10/27/14 at 9:37 pm to gingerkittie
OT ballers don't have debt son
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