A big question about IBR. Forum

[BarbellDreams]

I want to do PI work (ADA or PD) after law school. Lets say I make 40k/year, IBR would only force me to pay 6k per year correct? Now, here is my question: My school has a LARP program that averages about 4k per year. Does that 4k factor INTO the IBR or is that separate? What I mean is is that 4k on TOP of the 6k I already have to pay under IBR or does it factor in and I would only have to pay 2k per year due to IBR because 4k of the 6k I owe per IBR will be covered by LARP?

[Tangerine Gleam]

Which school? I think this is a question for your school and not as much about IBR specifically. Some schools have updated their LRAP programs to work with IBR; others haven't...it's just a matter of how the school structures its program.

[Teoeo]

If you make 40k there is no way you would be paying 6k a year from IBR. From what I understand your payment (for loans before 2014 - see health care reform) are 15 percent of DISCRETIONARY income (which is income after 200? percent of poverty level) So, I would estimate that, depending on where you live, that would cost you 1-2k. To answer your other question, LRAP programs compliment IBR, so you wouldnt use lrap on your gross debt, but rather the amount you owe through IBR. For example, lets say you make 40k a year and your discretionary income is 8k. You would owe the gov. 1200$, and most schools with LRAP would probably cover the whole thing (since 40k is pretty low) for that year. The percentage the LRAP covers goes down as your salary increases (each school has its own formulas) and at the end of 10 years the remaining debt (on federal loans) is forgiven.

[YCrevolution]

..

[Always Credited]

IBR monthly payments = Total Income - 150% of poverty level (16,000) x 15%

$40,000-$24,000x.15 = $2,400/year, or $200/month.

[Teoeo]

IBR monthly payments = Total Income - 150% of poverty level (16,000) x 15%

$40,000-$24,000x.15 = $2,400/year, or $200/month.

Thanks, I wasn't sure if it was 200 or 150