Anonymous User wrote:Nebby wrote:Anonymous User wrote:Looking for advice on whether to jump into PSLF.
I have around $200k in student debt (all federal) and am married to a spouse with no student loans. Just finishing up a clerkship and about to begin a position at a federal agency. The plan is to remain in government/public interest.
My school has a loan assistance program which I've been on since graduating. That program puts you on a 10 year repayment plan and indexes what you need to pay per month based on your salary. The school then covers the rest of my monthly payment. I've been looking at PSLF, and if I was to jump into that I'd pay substantially less per month (like around $500 less), and so I'm considering whether I should start that.
Whether I stay in my school's program or jump into PSLF, my loans will be paid off in 10 years, but under PSLF I'll have paid substantially less. However, I'm worried about the risk of relying on a program that's subject to the whims of Congress. Any advice? Should I save money and go with PSLF, or pay extra for the safety of a program I know won't go away?
I think you may be confusing PSLF with PAYE or other income-based repayment plans. PSLF would not reduce your monthly payments. PSLF is not a payment plan.
Payment plans are either standard (such as the standard 10 year repayment plan, which is sounds like you're currently on?) or income-based repayment plans (such as PAYE, which ties your payment to 10% of discretionary income).
PSLF is a forgiveness program. It merely forgives your remaining debt after 120 qualifying payments.
Sorry if I was unclear. I know PSLF isn't a repayment plan, I was using it for shorthand to say that I would change from a standard 10-year repayment plan (which my school's LRAP requires us to be on) to REPAYE or IBR (in order to take advantage of PSLF).
Essentially my question is whether to stay on my school's LRAP (under which my monthly payments would be higher but there is no risk of the program ending and my loans would be fully paid off after 10 years) or go instead for PSLF (which would mean getting on REPAYE, having lower monthly payments, and hoping that the program will still exist 10 years from now). Does that make sense?
I am having trouble seeing what would be the possible upside of REPAYE+PSLF in your situation.