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I will begin a bankruptcy clerkship at the end of next month, and I was wondering how other federal clerks have dealt with loans (e.g., IBR, PAYE, etc.) during their clerkship. I am single and owe over $180k (it hurts me to even type that), so I'm just wondering what the best option would be.

IBR (or PAYE if you're eligible).

A. Nony Mouse wrote:IBR (or PAYE if you're eligible).

And, FYI, a lot more people will be eligible for PAYE since Obama executive action changed it so you're not barred if you have any loans from pre-2007.

How does the calculus change depending on whether you're going to a firm after or not?
I have an offer to go back to my summer firm, but am probably going to apply for DOJ honors after. obviously you lose the bonus but does that then make it smarter to enter one of these plans based on having a lower income than firm pay?

Citizen Genet wrote:

A. Nony Mouse wrote:IBR (or PAYE if you're eligible).

And, FYI, a lot more people will be eligible for PAYE since Obama executive action changed it so you're not barred if you have any loans from pre-2007.

When will this go into effect?

I'm doing a two-year d.ct. clerkship now and a year of CoA after, and have about 130k in loans. Right now the plan is to return to the firm I summered at.

I'm doing the graduated repayment plan, which is ten years of repayment, with the amount increasing every two years. It'll be a lot per month during years 6-10, but I figure by that time I'll be in biglaw and can absorb the blow. Plus, in your second and third years of clerking (if you were looking at doing any more) the JS increase is pretty helpful.

I am currently doing a BK clerkship with about the same amount of debt as OP. I am enrolled in IBR (not eligible for PAYE...yet) and just pay the interest on my loans every month so that I am not losing ground. The interest payment is actually more than my IBR payment would be.

Also I'm pretty sure the PAYE executive order goes in to effect December 2015 but someone can correct me if I am wrong.