PAYE Questions

[ETSUpharmStudent]

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Who is currently doing the PAYE option for paying back their student loans? At what point of debt do you decide that this is a good choice? What are your monthly repayments? Any other input would be greatly appreciated! 🙂

 

[deleted158872]

Only choose PAYE if your debt is bigger than $200k... Otherwise you will end up paying much more than you owe...

Monthly repayment is capped at 10% of your income.

 

[Sugoi Travis]

Why not go with PAYE/IBR and choose the plan that offers the lowest monthly payment? Then you can control where your extra payments go if your loans are divided up into "accounts" so that you can pay off more of the principal. This is assuming that your loans are divided into accounts (obviously), you're able to allocate paying off a single account at a time and the monthly payment being dispersed across all loan accounts, which I don't know if that's the case or not.

 

[ETSUpharmStudent]

Thanks for the replies you all. I'll be right around 170k In debt when I graduate

 

[trailerpark]

Only choose PAYE if your debt is bigger than $200k... Otherwise you will end up paying much more than you owe...

Monthly repayment is capped at 10% of your income.

Hey I've heard other people say don't do IBR OR PAYE if your debt is a certain amount. Has anyone done the math, I'd love to see. I think I'm at like 150 right now.

 

[deleted158872]

Hey I've heard other people say don't do IBR OR PAYE if your debt is a certain amount. Has anyone done the math, I'd love to see. I think I'm at like 150 right now.

use this calculator: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

know that you'll have to pay tax on whatever remaining amount will be.