anyone heard of this new payment plan??

[Dent001]

i'm looking over my loan offers online and there are certain payment plans listed that no one ever mentions. it was mentioned at the usc interview's financial aide presentation, but the school im attending's financial aide counselor hasnt even heard of it. there is a payment plan which allows you to pay only 15% of your yearly income for 25 years, pay tax on remaining balance, then rest is totally forgiven. for those of you like me who are going into $350k+ at 7% interest this sounds like a great deal. you get to live a very comfortable life and basically live with good debt.


anyone have thoughts on this type of payment plan, maybe i'm missing some important points?

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[HoustonDAT]

i'm looking over my loan offers online and there are certain payment plans listed that no one ever mentions. it was mentioned at the usc interview's financial aide presentation, but the school im attending's financial aide counselor hasnt even heard of it. there is a payment plan which allows you to pay only 15% of your yearly income for 25 years, pay tax on remaining balance, then rest is totally forgiven. for those of you like me who are going into $350k+ at 7% interest this sounds like a great deal. you get to live a very comfortable life and basically live with good debt.


anyone have thoughts on this type of payment plan, maybe i'm missing some important points?

It's called Income Based Repayment Plan.

 

[pk62281]

What if you somehow end up making a million dollars a year? That's 150k a year to the government for just your loans, not including taxes.

 

[HoustonDAT]

What if you somehow end up making a million dollars a year? That's 150k a year to the government for just your loans, not including taxes.

Umm no.

http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp

OP, research this payment option. Speak with knowledgeable persons.

 

[Bereno]

I guess it depends on what you think you will be making. If you are going to specialize, I say don't do it. If you are going to be serving the poor, making a lesser income, do it. Just my opinion though...