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Hi, I'm considering switching from REPAYE to PAYE this upcoming year. I've been on REPAYE for approximately ~7 months. I intend on taking advantage of PSLF after the 10 year mark. Any foreseeable issues when considering only my switch from REPAYE to PAYE? Not very good with these sorts of things. Thanks.

Not an expert, but I think any unpaid interest you've accrued will be added to the principal of the loan when you switch payment plans. If you're planning to pay your loans off, could be something to consider.

If I'm wrong, please someone correct me.

yeah interest gets capitalized. but that shouldnt matter if you get pslf debt forgiven after 10 years.

One has to imagine that Congress will do away with the tax bomb for non-pslf people. Or maybe be this is just wishful thinking.

Might be a dumb question, but why would anyone want to switch from RePAYE to regular PAYE? Aren't they essentially the same thing if you plan on using PSLF (I know about the 20 vs 25 year difference for non PSLF)?

lapolicia wrote:Might be a dumb question, but why would anyone want to switch from RePAYE to regular PAYE? Aren't they essentially the same thing if you plan on using PSLF (I know about the 20 vs 25 year difference for non PSLF)?

I believe it has to do with if you get married, in certain circumstances. Something about different ways they calculate when MFS