Due to how high my debt will be upon graduation, I think RAP would be the best repayment plan for me due to the removal of negative amortization. I calculated the total cost at around $805k for RAP vs $1.9 million for the standard plan (I'd be put into the 25 year standard plan based on my balance). As for New IBR, I didn't calculate it because I just assume RAP will be better due to how high my interest will be yearly (since RAP will waive all additional interest that my payment didn't cover). If anyone thinks New IBR would be better let me know

    Cost of attendance: $655,265

    Total balance with interest after graduation + 6 month deferment: $800,000

    Salary: $200,000 gross, $176,500 AGI

    Taxes: Single filer / standard deduction / no dependents

    Location: California

    Payments will be 10% of AGI, total is $529,500 ($17,650/yr for 30 years)

    Government match takes off $18,000 ($50/mo for 30 years)

    Balance will be $782,000 upon forgiveness, the tax bomb will be about $275k.

    Adding the tax bomb + all monthly payments, I get ~$805k total across 30 years for a $800,000 balance.

    Can someone check my math on a loan balance of $800,000 once I enter repayment
    byu/KindaNotSmart inStudentLoans



    Posted by KindaNotSmart

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