Why should I be worried about debt when there is IBR? Forum
- Mr. Somebody
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Why should I be worried about debt when there is IBR?
Worst comes to worst I can use IBR and I'll be just fine.
- fatduck
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Re: Why should I be worried about debt when there is IBR?
okay.jpgMr. Somebody wrote:Worst comes to worst I can use IBR and I'll be just fine.
- joemoviebuff
- Posts: 788
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Re: Why should I be worried about debt when there is IBR?
Until you hit the 25th year and get stuck with a gigantic tax bomb, then get to declare bankruptcy when you're 50. If that qualifies as "just fine," then by all means, go ahead.
- sd5289
- Posts: 1611
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Re: Why should I be worried about debt when there is IBR?
Yes.should I be worried about debt?
The answer to this is always yes.
- kapachino
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- Joined: Mon Feb 07, 2011 11:43 pm
Re: Why should I be worried about debt when there is IBR?
IBR is subject to change, which a lot of people tend to forget. The thing about taking on so much debt and counting on IBR is that your financial life will be shit until IBR takes effect, if it indeed stays as it is when you sign up for it. It's not a good way to start out. Are you interested in doing PI? If so, there are two programs that could help you: LRAP (if your school has it) and PSFL. I'd look into those and then decide if taking on a mountain of debt is worth it.
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Re: Why should I be worried about debt when there is IBR?
can someone explain the tax bomb thing to me...
not going to be using IBR, so dont beat me up for not knowing, just curious.
not going to be using IBR, so dont beat me up for not knowing, just curious.
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Re: Why should I be worried about debt when there is IBR?
I'm pretty sure the "forgiven" remaining balance is counted as income.
- rayiner
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Re: Why should I be worried about debt when there is IBR?
If your IBR payments don't cover your accrued interest, it will continue to accrue (it will not, however, be capitalized--under IBR federal loans are simple interest). At the end of the period you'll owe like $500k. When that's forgiven it will count as income and will generate a $200k tax bill.admisionquestion wrote:can someone explain the tax bomb thing to me...
not going to be using IBR, so dont beat me up for not knowing, just curious.
- sunynp
- Posts: 1875
- Joined: Tue May 24, 2011 2:06 pm
Re: Why should I be worried about debt when there is IBR?
How will you be fine with that massive amount of debt hanging over you? Will you be able to buy a house or a car? I suppose maybe a car because that can be repossessed. Will you ever have sayings? You will be in debt for school longer than you have been alive so far (for most people, anyway.) Will you find a partner to marry with that much debt?
Here is another problem with IBR - the documentation and dealing with it is a complete hassle, I've read. They take your tax return once a year. There is no provision to help you if you lose your job in between that time. There have been many consumer complaints about dealing with IBR. It isn't a simple thing and it has been designed as a measure of last resort for people. IBR is the thing that keeps people from committing suicide over the stress of debt they can't repay, it doesn't mean your life will be fine.
Here is another problem with IBR - the documentation and dealing with it is a complete hassle, I've read. They take your tax return once a year. There is no provision to help you if you lose your job in between that time. There have been many consumer complaints about dealing with IBR. It isn't a simple thing and it has been designed as a measure of last resort for people. IBR is the thing that keeps people from committing suicide over the stress of debt they can't repay, it doesn't mean your life will be fine.
- alwayssunnyinfl
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- Joined: Tue Mar 13, 2012 9:34 pm
Re: Why should I be worried about debt when there is IBR?
Does the IRS have an IBR program?rayiner wrote:If your IBR payments don't cover your accrued interest, it will continue to accrue (it will not, however, be capitalized--under IBR federal loans are simple interest). At the end of the period you'll owe like $500k. When that's forgiven it will count as income and will generate a $200k tax bill.admisionquestion wrote:can someone explain the tax bomb thing to me...
not going to be using IBR, so dont beat me up for not knowing, just curious.
- IAFG
- Posts: 6641
- Joined: Mon Jun 15, 2009 1:26 pm
Re: Why should I be worried about debt when there is IBR?
Yes, the "fuck you, pay me" plan.alwayssunnyinfl wrote:Does the IRS have an IBR program?rayiner wrote:If your IBR payments don't cover your accrued interest, it will continue to accrue (it will not, however, be capitalized--under IBR federal loans are simple interest). At the end of the period you'll owe like $500k. When that's forgiven it will count as income and will generate a $200k tax bill.admisionquestion wrote:can someone explain the tax bomb thing to me...
not going to be using IBR, so dont beat me up for not knowing, just curious.
- rayiner
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Re: Why should I be worried about debt when there is IBR?
This is why we can't have nice things (like safety nets). Because stupid fuckwads use it as carte blanche to make stupid fuckwad decisions.
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Re: Why should I be worried about debt when there is IBR?
What is wrong with you?rayiner wrote:This is why we can't have nice things (like safety nets). Because stupid fuckwads use it as carte blanche to make stupid fuckwad decisions.
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- rayiner
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Re: Why should I be worried about debt when there is IBR?
Wasn't talking to you, was talking to "Mr. Somebody".admisionquestion wrote:What is wrong with you?rayiner wrote:This is why we can't have nice things (like safety nets). Because stupid fuckwads use it as carte blanche to make stupid fuckwad decisions.
- IAFG
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Re: Why should I be worried about debt when there is IBR?
"Since hospitals have to provide emergency treatment, imma skip the helmet on my motorcycle!"rayiner wrote:This is why we can't have nice things (like safety nets). Because stupid fuckwads use it as carte blanche to make stupid fuckwad decisions.
- alwayssunnyinfl
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Re: Why should I be worried about debt when there is IBR?
I actually know several people who think this way. Darwinism at its finest.IAFG wrote:"Since hospitals have to provide emergency treatment, imma skip the helmet on my motorcycle!"rayiner wrote:This is why we can't have nice things (like safety nets). Because stupid fuckwads use it as carte blanche to make stupid fuckwad decisions.
- sunynp
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- Joined: Tue May 24, 2011 2:06 pm
Re: Why should I be worried about debt when there is IBR?
Here is one simple administrative issue with IBR. Banks hate it and want to make it as hard as possible. So you have an annual anniversary to provide income information, but the bank doesnt have to tell you when it is. If you miss the deadline, you are back to a much higher payment. It takes 3 months to process the paperwork!
http://www.ibrinfo.org/index.phpIf you're already in IBR, make sure your lender has updated income information for you before the annual anniversary of your enrollment in the program, so they can determine your payment for the next year. Missing your deadline can result in a much higher payment that doesn't take your income into account. Currently, lenders aren't required to notify borrowers about this crucial deadline. Borrowers have reported that it can take up to three months to process the paperwork, and processing delays can also trigger a high payment.
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Re: Why should I be worried about debt when there is IBR?
I dont mean to overreact, but I fail to see how complaints with a poorly designed (or so it seems) safety net for student debt, translates into an pro conservative discussion on medical care...
One safety net is bad, so they all are?
or to be more generous are you saying, "because people misunderstand one safety net and make bad decisions they will do so with all safety nets..."
Either way, wtf?
@darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
One safety net is bad, so they all are?
or to be more generous are you saying, "because people misunderstand one safety net and make bad decisions they will do so with all safety nets..."
Either way, wtf?
@darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
- moneybagsphd
- Posts: 888
- Joined: Mon Oct 03, 2011 11:07 pm
Re: Why should I be worried about debt when there is IBR?
I was surprised to see OP-- i.e. not a troll-- authored this abortion of a thread.
- Colonel Angus
- Posts: 77
- Joined: Sat Jun 23, 2012 7:57 pm
Re: Why should I be worried about debt when there is IBR?
Don't knock this line of reasoning, you may need a liver or other vital organ someday.IAFG wrote:"Since hospitals have to provide emergency treatment, imma skip the helmet on my motorcycle!"rayiner wrote:This is why we can't have nice things (like safety nets). Because stupid fuckwads use it as carte blanche to make stupid fuckwad decisions.
- sunynp
- Posts: 1875
- Joined: Tue May 24, 2011 2:06 pm
Re: Why should I be worried about debt when there is IBR?
What thread is that from? Can you please start a new thread if you want to discuss this. I would love to have one thread on TLS where we can discuss that IBR isn't a free ride to borrow $250,000 for law school.admisionquestion wrote:I dont mean to overreact, but I fail to see how complaints with a poorly designed (or so it seems) safety net for student debt, translates into an pro conservative discussion on medical care...
One safety net is bad, so they all are?
or to be more generous are you saying, "because people misunderstand one safety net and make bad decisions they will do so with all safety nets..."
Either way, wtf?
@darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
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Re: Why should I be worried about debt when there is IBR?
sunynp wrote:What thread is that from? Can you please start a new thread if you want to discuss this. I would love to have one thread on TLS where we can discuss that IBR isn't a free ride to borrow $250,000 for law school.admisionquestion wrote:I dont mean to overreact, but I fail to see how complaints with a poorly designed (or so it seems) safety net for student debt, translates into an pro conservative discussion on medical care...
One safety net is bad, so they all are?
or to be more generous are you saying, "because people misunderstand one safety net and make bad decisions they will do so with all safety nets..."
Either way, wtf?
@darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
Thats fine. im responding to stupid shit people are saying in this thread. Im confused by your confusion.
- IAFG
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Re: Why should I be worried about debt when there is IBR?
You seem confused and mad. Unattractive combination. No one ITT is upset the safety net exists. We are upset that people use the safety net to indemnify their idiotic choices. You can be happy about a system and still be pissed at its abusers. And I don't think they "misunderstand" the safety net at all.admisionquestion wrote:I dont mean to overreact, but I fail to see how complaints with a poorly designed (or so it seems) safety net for student debt, translates into an pro conservative discussion on medical care...
One safety net is bad, so they all are?
or to be more generous are you saying, "because people misunderstand one safety net and make bad decisions they will do so with all safety nets..."
Either way, wtf?
@darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
- sunynp
- Posts: 1875
- Joined: Tue May 24, 2011 2:06 pm
Re: Why should I be worried about debt when there is IBR?
The stupid shit is that IBR is a good reason to borrow to law school. I think OP was probably trolling for this reaction anyway.admisionquestion wrote:sunynp wrote:What thread is that from? Can you please start a new thread if you want to discuss this. I would love to have one thread on TLS where we can discuss that IBR isn't a free ride to borrow $250,000 for law school.admisionquestion wrote:I dont mean to overreact, but I fail to see how complaints with a poorly designed (or so it seems) safety net for student debt, translates into an pro conservative discussion on medical care...
One safety net is bad, so they all are?
or to be more generous are you saying, "because people misunderstand one safety net and make bad decisions they will do so with all safety nets..."
Either way, wtf?
@darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
Thats fine. im responding to stupid shit people are saying in this thread. Im confused by your confusion.
- alwayssunnyinfl
- Posts: 4100
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Re: Why should I be worried about debt when there is IBR?
Outed as never having heard of social darwinism.admisionquestion wrote: @darwinism comment, THAT IS NOT DARWINISM. IT HAS NOTHING TO DO WITH DARWINISM. IT HAS NOTHING TO DO WITH HOW SPECIES EVOLVE OUT OF OTHER SPECIES OVER TIME. IT HAS TO DO WITH STUPID PEOPLE DYING. It does not indicate if these same stupid people had ample time to procreate prior... For all you know this system of extra fun ski time is causually linked to them being MORE LIKELY to have unprotected sex the night before...
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