How do loan servicers calculate monthly payments when you retire? Forum
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Anonymous User
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How do loan servicers calculate monthly payments when you retire?
Asking for an older friend who decided to switch careers and go to law school in his 50's. He is relying in part on student loans and didn't think much about how repayment works once he graduates. If he enters into PAYE, before he retires at 65 or whatever, his loan servicer will use his income to determine his monthly payments. But what about when he retires? Will social security be considered income? Or cashing out an IRA?
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Anonymous User
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Re: How do loan servicers calculate monthly payments when you retire?
They use the number that you report as gross income in your tax return. So it would be a portion of Social Security benefits as well taxable withdrawals from retirement accounts and whatever other taxable income there may be.
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Anonymous User
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Re: How do loan servicers calculate monthly payments when you retire?
That's what I was thinking. Maybe I will advise him to set up a trust now.Anonymous User wrote:They use the number that you report as gross income in your tax return. So it would be a portion of Social Security benefits as well taxable withdrawals from retirement accounts and whatever other taxable income there may be.
