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REPAYE v. PAYE Advice

Posted: Tue Jan 10, 2017 1:28 am
by Impishee
*PLEASE DON'T QUOTE, I'LL DELETE THIS LATER THX*

I used to religiously research student loan programs, but now I am insanely busy and I have to turn my income driven plan reapplication in pronto. TLS, please help. Some important factors:

-Married (filing seperately)
-My income about 50k-70k
-Spouse income 35k-50k
-PSLF (quite a few more years before sweet forgiveness)

I think I had PAYE last year, but, this year the application has an option of 'whichever offers the lowest payment.' I guess my main concern is that, I see they are asking for spousal income this year if you qualify for REPAYE. The application says that spousal income will only be used if I qualify for REPAYE. I know little about REPAYE, but I'm worried about one part saying that, "Your payment will be based on the combined income and loan debt of you an your spouse regardless of whether you file a joint or separate Federal income tax return, unless you and your spouse (1) are separated or (2) you are unable to reasonably access your spouse's income information." I'd like to have them only consider my income (unless there is some big incentive not to). Furthermore, unlike PAYE, I see for REPAYE that it says graduate or professional study loans are forgiven after 25 years of qualifying loans (instead of 20).

Am I missing something? PAYE still seems better for me, but I'd appreciate some insights.

Re: REPAYE v. PAYE Advice

Posted: Tue Jan 10, 2017 5:10 pm
by lawhoo16
PAYE is definitely better from what I can tell for the reasons you mentioned. PAYE allows you to file separately and not have your spouse's income count towards your income for purposes of repayment. REPAYE takes your spouse's income into consideration even if you file separately.

Edit: REPAYE is newer, but is intended to capture more borrowers (those who received $$$ before PAYE was implemented) albeit at less favorable terms.

Re: REPAYE v. PAYE Advice

Posted: Tue Jan 10, 2017 10:17 pm
by Impishee
Okay, thanks. I remember hearing about an attempt to get more people in, so maybe REPAYE was the outcome.

Re: REPAYE v. PAYE Advice

Posted: Tue Jan 10, 2017 10:32 pm
by JenDarby
there are some benefits to REPAYE in the form of extra subsidized interest or something. it came out after I refinanced so I didn't really look into it, but I recommend this thread for loan advice

http://www.top-law-schools.com/forums/v ... start=3075

Re: REPAYE v. PAYE Advice

Posted: Tue Jan 10, 2017 11:36 pm
by Impishee
Awesome, thanks!