Thanks for your post, and that was how I read a lot of the situation myself when it comes to how the rules may change over time, and wasn't sure if the taxable account would be a nice hedge with that in mind. Thanks for your input.

quote:
One more question, and I'm not trying to be rude here. How are you able to save money for a potential tax debt down the road, but are unable to make normal student loan payments and thus must be on IBR?

Basically, full repayment could possibly make anything else impossible. No kids, no house, no vacations, no quality of life for 25 years or until my income rose enough to be able to absorb it. IBR gives me a breather to figure that all out, it wouldn't bother me to eventually get to full repayment as my income rose, but I would basically not be able to do anything at all, ever. I mean literally nothing, except food, water, shelter.

Now, I know how some people feel about this sort of thing as the poster above, but I only get to live life once, and then I'm fricking dead, and that's how I see it. I don't think that is being deceitful or a brat, but being a realist.

The government, as the lender, will receive a very handsome 6 figure sum over 25 years, another 6 figure lump sum at taxes due, plus, will get to tax my income in the 5 figure range for 25 years as well as per the terms of the contract they have with me.

I wonder if someone would call me a thief if I joined the military with my salary paid by the government, (less pay equal less monthly payments owed) for 10 years and had my loan AND income taxes forgiven under the PSLF program?

This post was edited on 4/2/14 at 12:09 pm

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Posted by meldawg399

nola

Member since Oct 2008

1168 posts

Posted on 4/3/14 at 8:36 am to Teddy Ruxpin

quote:
No kids, no house, no vacations, no quality of life for 25 years

I agree if someone establishes rules (like the government for loan forgiveness) and meet the criteria, it is fair. But no one is entitled to a certain quality of life just because they live. I guess in college I should have taken out more loans and not worked while in school to keep my debt low so I could have had a better quality of life in college. Then I could have let the government pay for them.

The bottom line is that when you do take out a loan, you're side of the loan paperwork is to pay it back; if you take out a college loan, you're expecting to get a job that provides you enough money to comfortably pay it back. If you don't finish the degree or don't make enough money to pay it back and have a certain quality of life you desire, that's the chance you take.

All the big banks and corporations the government bailed out should have been left to fail or sold at fire sale prices to willing buyers; the government shouldn't have been the backstop. They made their beds.

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 4/3/14 at 12:21 pm to Teddy Ruxpin

quote:
Basically, full repayment could possibly make anything else impossible. No kids, no house, no vacations, no quality of life for 25 years or until my income rose enough to be able to absorb it.

So repayment is possible, just inconvenient for you. Your expectations aren't being met, so let someone else eat the cost. You are going to take wealth from other people, but you are okay with that because you are playing by the rules, and you are going to pay tax on the amount you plan to take. Hooray for you.

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