Tiago Splitter wrote:chiguy99 wrote:Are the fin hardship calculations really that easy to fall into? I was initially thinking not PAYE for the very reason that I fully anticipate being out of fin hardship in yr 3, 4, 5 ... Def sometime before the yr 20. IF things go as planned, PAYE pmts will exceed an extended plan in just a couple yrs and 10% capitalization is a hard pill to swallow
Depends on the debt level. You go out of financial hardship if the PAYE minimum exceeds the 10 year plan payments. The 10% capitalization isn't much of an issue: capitalization for someone with 200k debt means about an extra 100 bucks a month in interest. It's not like there's some big up front cost you'll incur if you fall out of financial hardship.
Regarding your last post, again it depends on the debt level. Someone starting with 250k in debt needs to make upwards of 400k to be out of financial hardship.
Looking into PAYE and realized why I dismissed it ... First loan is from 2006 ... Ineligible. As I read it, sounds like I'm ineligible completely, as opposed to just my pre-Oct '07 loans
Sorry for steering ship away, just thought the discussion would be helpful to everyone since no one's figures and situations are identical but all could consider what I'm proposing