IBR Question/Advice Forum

[Phreaxer]

I just finished school and have a very large balance in student loans. Not just from LS, but from a couple other degrees I previously obtained. I will be taking the bar next year and am currently not working. Because I have used my loan deferment in the past, my loans are due, starting now. It was brought to my attention that I need to request an IBR plan, but I didn't realize there were so many options.

Debt: about $400,000 (all private schools, fed loans though)
Payments: Not really clear yet
Income: Going to be none for the next few months, but should be close to 75k annually by the end of the year.
Plan: Where I need advice.
Important info: I'm single (long-term dating relationship, but unmarried). I have kids and child support to pay (which has been and will be maintained).

What IBR (or other deferment plan) would be best for these numbers?

[Nebby]

PAYE or REPAYE (if not eligible for PAYE).

[Phreaxer]

If I read it properly, I don't qualify for PAYE because I took loans out before 07. REPAYE isn't a bad option either given my situation and numbers though.

[Nebby]

REPAYE it is!

[A. Nony Mouse]

REPAYE it is!

[Respondeat_Inferior]

I know this is far down in the future but it's worth thinking about now because you can't very well just uproot yourself in 20 years: If you end up in a career path that doesn't have a reasonable chance of paying that off (and I'm sure you know that's a pretty high number), consider moving to a state like Washington that doesn't have state income tax.

No state income tax means the explosion is smaller when your tax bomb goes off at the point of loan forgiveness.

[Phreaxer]

That's a very interesting factor to consider. Yeah, it is a long ways off, but it's good to have stuff like that in mind. Especially if, in my case, it might be a six-figure tax bomb.

Thanks for bringing it up.

btw, I submitted my application for REPAYE. Fingers crossed, hope it works