Everybody needs to really pay attention to the PROSPER Act that they're trying to pass. If it goes through, all of you would be cut off from using PAYE or REPAYE
After a quick google search, (
House Republicans propose big changes to student loans) I found that the new house bill would cut out those IBR programs, but possibly replace it with a new type that allows us to stretch out what a traditional 10 year plan would cost?
Some interesting points i found:
"Federal loan limits for graduate students — who often run up student loan debt balances of
$200,000 or more to obtain degrees in law and medicine — would increase to $150,000, up from $138,500 today. Medical school students and others pursuing certain health-related degrees would be allowed to borrow up to $235,500, up from $224,000 today.
But graduate students would no longer be eligible to take out PLUS loans, which today can be used to finance any amount up to a school’s certified cost of attendance, minus other aid and loans already received.
Under the PROSPER Act, borrowers stretching out their payments in an income-driven repayment plan couldn’t qualify for “time-based” loan forgiveness. But they would be off the hook after paying an amount of principal and interest equal to what they would have paid in the standard 10-year repayment plan. So in this case, a borrower would be able to stretch out their payments over a longer period of time, but make no more than $108,372 in payments."
Also I noticed that the article made no mention of the REPAYE/PAYE forgiveness amount being counted as taxable income... so take it with a grain of salt, I guess.
EDIT: lol just saw you made a separate thread for this. Disregard.
