so i been reading about income based repayment (ibr) and stuff and have come to the conclusion that it is best to have as much debt as possible. basically, lets say you somehow end up with 500k in loans and 7% interest in loans by the time you become an attending. lets assume you make 200k. under ibr, u have to only pay 15% of your income above 150% of poverty level so it comes out to around 30-40k in loan payment per year (or whatever would be proportionate due to inflation over the years). after 20-25 yrs of paying, your loans are forgiven, but whatever is remaining is currently considered taxable, but if you borrow enough, your total debt should be close to 700k since the minimum ibr payment is less than interest, therefore even if you make 350k in 20-25 yrs due to inflation, your taxable income would be like a million bucks, and your salary of 350k woudlnt even be enough to pay taxes, so you would not be responsible according to: http://www.finaid.org/loans/forgivenesstaxability.phtml
"There are proposals to make other forms of student loan forgiveness non-taxable, such as the forgiveness of income-contingent repayment balances after 25 years, but none have become law yet. The general public policy trend is toward excluding from income any forgiveness for individuals who would be unable to pay the taxes on the forgiveness."
at least for me, i can live a luxurious lifestyle while still paying 30-40k or the equivalent in loans for 25 yrs, it might not be good for you if you wanna have like 5 kids and live in a million dollar home, so finally correct me if im wrong with anything above
"There are proposals to make other forms of student loan forgiveness non-taxable, such as the forgiveness of income-contingent repayment balances after 25 years, but none have become law yet. The general public policy trend is toward excluding from income any forgiveness for individuals who would be unable to pay the taxes on the forgiveness."
at least for me, i can live a luxurious lifestyle while still paying 30-40k or the equivalent in loans for 25 yrs, it might not be good for you if you wanna have like 5 kids and live in a million dollar home, so finally correct me if im wrong with anything above