- Joined
- Jan 26, 2015
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And what happens when your monthly payment doesn’t cover your accrued interest? Your loans snowball, that’s what happens. At $500,000 you need to be paying over $30,000 a year just to cover your interest. If you’re not paying at least that your going to watch your loan balance grow. That’s how the infamous Mike Meru went from $600,000 at graduation to a projected $2,000,000+ when his loans will be forgiven. That’s going to be one heck of a tax bomb.Again. REPAYE. Monthly payment = 10% of what you will make discretionarily per month. My student loans could be 1 million. If I make 120k a year my monthly payments are 1k a month. I make 1M my monthly payments are 8,333.33. I make 60K payment is 500 a month. You get the jist…
If I make 120k a year, and pay the 1k a month(10%), The other 9k I can do whatever the heck I want with.
Big Hoss