So is PAYE going to be open to everyone or what?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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Bronx Bum
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So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Mon Dec 23, 2013 10:41 am

Trying to decide whether I should get on IBR or wait for PAYEEEE. (pre-2007 loans).

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twenty
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Re: So is PAYE going to be open to everyone or what?

Postby twenty » Mon Dec 23, 2013 1:38 pm

counterplan: start on IBR, transition to PAYE once/if you have that option.

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Bronx Bum
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Re: So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Mon Dec 23, 2013 1:40 pm

twentypercentmore wrote:counterplan: start on IBR, transition to PAYE once/if you have that option.


That isn't the best option, I wouldn't think. Because if I do that, I would need to start the clock over on PAYE. Might as well keep it on forbearance and then go one PAYE once it's open.

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twenty
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Re: So is PAYE going to be open to everyone or what?

Postby twenty » Mon Dec 23, 2013 2:23 pm

Bronx Bum wrote:
twentypercentmore wrote:counterplan: start on IBR, transition to PAYE once/if you have that option.


That isn't the best option, I wouldn't think. Because if I do that, I would need to start the clock over on PAYE. Might as well keep it on forbearance and then go one PAYE once it's open.


Even if you're 7-8 years into IBR, it still makes sense to switch to PAYE. Personally, I'd assume that the feds will never let IBR kids transition to PAYE; get started on eating that elephant now. If you're making 50k a year, that ends up being less than 5k/yr in IBR payments. I dunno, that's just me.

On the other hand, if you really need the money right now, and you feel like you'd rather make up that time on the back end with (presumably) higher payments, then sure, defer.

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Bronx Bum
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Re: So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Mon Dec 23, 2013 2:35 pm

twentypercentmore wrote:
Bronx Bum wrote:
twentypercentmore wrote:counterplan: start on IBR, transition to PAYE once/if you have that option.


That isn't the best option, I wouldn't think. Because if I do that, I would need to start the clock over on PAYE. Might as well keep it on forbearance and then go one PAYE once it's open.


Even if you're 7-8 years into IBR, it still makes sense to switch to PAYE. Personally, I'd assume that the feds will never let IBR kids transition to PAYE; get started on eating that elephant now. If you're making 50k a year, that ends up being less than 5k/yr in IBR payments. I dunno, that's just me.

On the other hand, if you really need the money right now, and you feel like you'd rather make up that time on the back end with (presumably) higher payments, then sure, defer.


Dude, no offense, but I have no idea WTF you're talking about. I don't think you do either. just shows how no one knows about these loan programs.

"I'm still trying to get my head around some concepts that I heard today," he said, "that irrespective of the amount of money you borrow or the interest rate, that you'll still end up paying the same amount." "Wow, somehow that doesn't seem possible,"

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twenty
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Re: So is PAYE going to be open to everyone or what?

Postby twenty » Mon Dec 23, 2013 4:05 pm

Bronx Bum wrote:
twentypercentmore wrote:
Bronx Bum wrote:
twentypercentmore wrote:counterplan: start on IBR, transition to PAYE once/if you have that option.


That isn't the best option, I wouldn't think. Because if I do that, I would need to start the clock over on PAYE. Might as well keep it on forbearance and then go one PAYE once it's open.


Even if you're 7-8 years into IBR, it still makes sense to switch to PAYE. Personally, I'd assume that the feds will never let IBR kids transition to PAYE; get started on eating that elephant now. If you're making 50k a year, that ends up being less than 5k/yr in IBR payments. I dunno, that's just me.

On the other hand, if you really need the money right now, and you feel like you'd rather make up that time on the back end with (presumably) higher payments, then sure, defer.


Dude, no offense, but I have no idea WTF you're talking about. I don't think you do either. just shows how no one knows about these loan programs.


Well, let's start with the part you're confused on. At some point, you're going to have to pay either a larger amount for 25 years (IBR), or a smaller amount for 20 years (PAYE). Your hope (and mine as well, really) is that Congress opens PAYE up to folks that had student loans before the 2007 cutoff. Now, that may easily happen, and if it does, that's fantastic -- but I think you have to consider the very real possibility that it doesn't happen.

In the world where, in three years, Congress allows previously-non-eligibles to become PAYE-eligible, then deferment/forbearance now absolutely makes sense. Cool, you've just saved yourself about 15k over three years. In the world where Congress doesn't open the metaphorical floodgates, you're still going to have to make 25 years of payments, you've just kicked the can a little further down the road. The suck is, you'll probably be making significantly more money 25 years from now, so the 5k/yr you'd pay now to be on the IBR track seems fairly appealing in that light.

So realistically, you just have to factor the likelihood of Congress allowing people that only qualify for IBR to be able to do PAYE. As I mentioned before: For me personally, I would be willing to run the risk of wasting a few thousand dollars a year for 1-5 years only to be pleasantly surprised that PAYE would later be an option, than to count on PAYE being an option in the future only to have it not be.

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Clearly
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Re: So is PAYE going to be open to everyone or what?

Postby Clearly » Mon Dec 23, 2013 4:07 pm

Never make your financial plans based on speculative legal changes. Right now, you're not eligible for PAYE, work with what you have...

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Bronx Bum
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Re: So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Mon Dec 23, 2013 4:43 pm

Clearly wrote:Never make your financial plans based on speculative legal changes. Right now, you're not eligible for PAYE, work with what you have...


Who the hell are you? Charles Schwab?
Last edited by Bronx Bum on Mon Dec 23, 2013 4:57 pm, edited 1 time in total.

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Bronx Bum
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Re: So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Mon Dec 23, 2013 4:43 pm

In the world where, in three years, Congress allows previously-non-eligibles to become PAYE-eligible, then deferment/forbearance now absolutely makes sense. Cool, you've just saved yourself about 15k over three years. In the world where Congress doesn't open the metaphorical floodgates, you're still going to have to make 25 years of payments, you've just kicked the can a little further down the road. The suck is, you'll probably be making significantly more money 25 years from now, so the 5k/yr you'd pay now to be on the IBR track seems fairly appealing in that light.

So realistically, you just have to factor the likelihood of Congress allowing people that only qualify for IBR to be able to do PAYE. As I mentioned before: For me personally, I would be willing to run the risk of wasting a few thousand dollars a year for 1-5 years only to be pleasantly surprised that PAYE would later be an option, than to count on PAYE being an option in the future only to have it not be.[/quote]


Thanks for that! I take back what I said!

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Clearly
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Re: So is PAYE going to be open to everyone or what?

Postby Clearly » Mon Dec 23, 2013 9:59 pm

Bronx Bum wrote:
Clearly wrote:Never make your financial plans based on speculative legal changes. Right now, you're not eligible for PAYE, work with what you have...


Who the hell are you? Charles Schwab?

Oh your right, this isn't a forum where you post a question, and other people answer it. Totally plan around a system your not eligible for.

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Bronx Bum
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Re: So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Tue Dec 24, 2013 9:10 am

Clearly wrote:
Bronx Bum wrote:
Clearly wrote:Never make your financial plans based on speculative legal changes. Right now, you're not eligible for PAYE, work with what you have...


Who the hell are you? Charles Schwab?

Oh your right, this isn't a forum where you post a question, and other people answer it. Totally plan around a system your not eligible for.


Wow Man U see like an awesome person to be around. People in law school must love you.

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Re: So is PAYE going to be open to everyone or what?

Postby bjsesq » Tue Dec 24, 2013 9:16 am

Bronx Bum wrote:
Clearly wrote:
Bronx Bum wrote:
Clearly wrote:Never make your financial plans based on speculative legal changes. Right now, you're not eligible for PAYE, work with what you have...


Who the hell are you? Charles Schwab?

Oh your right, this isn't a forum where you post a question, and other people answer it. Totally plan around a system your not eligible for.


Wow Man U see like an awesome person to be around. People in law school must love you.


Chill the fuck out, dude.

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Bronx Bum
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Re: So is PAYE going to be open to everyone or what?

Postby Bronx Bum » Tue Dec 24, 2013 10:23 am

Man, I HAVE to be on PAYE. You have no idea what it's like. PAYE v. IBR is the difference between me having a family, a home, or one day /self.

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Bronx Bum
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I DEMAND PAYE

Postby Bronx Bum » Tue Dec 24, 2013 10:48 am

I DEMAND that I be allowed on PAYE. This is ridiculous. Because of ONE loan I took out in Aug 2007 for $4k, the rest of my $150k loans are ineligible. After the holiday I'm going to drive to PAYE and get on this program.

Who do I talk to ? I need to be on this program. I am seriously depressed. I can't pay my loans and IBR is no good. I NEED to be on PAYE. I can only afford 10% of my income.

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phillywc
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Re: I DEMAND PAYE

Postby phillywc » Tue Dec 24, 2013 11:02 am

Look man that sucks and all, but this didn't need two topics and it is outside of your control. Accept what you cannot change.

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A. Nony Mouse
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Re: I DEMAND PAYE

Postby A. Nony Mouse » Tue Dec 24, 2013 11:06 am

phillywc wrote:Look man that sucks and all, but this didn't need two topics and it is outside of your control. Accept what you cannot change.

This is correct, and is why I merged the two.

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Bronx Bum
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Re: I DEMAND PAYE

Postby Bronx Bum » Tue Dec 24, 2013 11:10 am

A. Nony Mouse wrote:
phillywc wrote:Look man that sucks and all, but this didn't need two topics and it is outside of your control. Accept what you cannot change.

This is correct, and is why I merged the two.


Thank you kind mod. I apologize. I'm just depressed during the holidays due to my loans situation and the fact that my life is in ruins. I guess that's why you guys are here, to set me straight. Thanks and happy holidays.

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Re: So is PAYE going to be open to everyone or what?

Postby Paul Campos » Mon Jan 06, 2014 6:34 pm

The new budget proposal would extend PAYE to all qualifying loans no matter when they were taken out.

See http://www2.ed.gov/about/overview/budget/budget14/justifications/s-loansoverview.pdf at S-14

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twenty
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Re: So is PAYE going to be open to everyone or what?

Postby twenty » Tue Jan 07, 2014 4:15 am

That's pretty big news. :o

rwilson15
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Re: So is PAYE going to be open to everyone or what?

Postby rwilson15 » Tue Jan 07, 2014 2:23 pm

That is just in Obama's bill. GOP bill doesn't have pre-10/1/07 expansion in it.




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