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How do loan servicers calculate monthly payments when you retire?
Posted: Tue Jan 26, 2016 1:14 pm
by Anonymous User
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?
Re: How do loan servicers calculate monthly payments when you retire?
Posted: Tue Jan 26, 2016 1:19 pm
by Anonymous User
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.
Re: How do loan servicers calculate monthly payments when you retire?
Posted: Tue Jan 26, 2016 1:30 pm
by Anonymous User
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.
That's what I was thinking. Maybe I will advise him to set up a trust now.