I’ve been reading, and have used calculators and wanting to see if I’m really as f-ed and trapped as I feel.
Husband and I both have advanced degrees, doctorates earned 10ish years ago. His balance is $176k, mine $215k. We both went into SAVE plans a few years back- he was working, I was just doing some part time adjunct teaching while kids were young.
Current state- kids all in school, including one in college and one on the way to college, one starting high school. Our 2025 AGI was $445k. We pay tuition 100%, no aid because of income. Also mortgage, cars, $1,000 in car insurance and $1,500 in health insurance, 8% into retirement, blah blah blah.
With these new loan repayment options, we are looking at > $4k in payments a month. Pre-pause, we were paying around $1,600 between us.
Is this genuinely the only option for us? To be honest, we won’t be able to afford what is almost 3x the old payment. These new RAP and IDR options don’t seem to be realistic for high income households, raising families.
We took the loans, we got the education, we intend to pay back. But with high professional school balances, how does this not eviscerate people?
What do you do if you are us? Is there any potential legislation continues to impact this?
Posted by Few-Brush2655
4 Comments
Can you do an extended repayment plan, perhaps graduated, to push out larger payments until the kids are through college and those funds free up?
Income based loan repayment will be limited to RAP and IBR starting in 2028. The Trump administration is not going to provide any significant relief as they have systematically gutted loan repayment programs. PSLF may be an option if your employer qualifies but you have to pay for 10 years. I’m not aware of any other options. You could flee the country and get jobs outside the USA which would put your AGI at zero and minimize your payments (I’m half kidding). Sorry, I got nothing for you. Good luck
My wife and I dont earn nearly as much as you, but I’m in the same boat. We cant afford the new payment and will likely default immediately. I know we aren’t alone. This change will have us going from “making it” to “sinking”
Im in a similar boat. Am wondering if there is a attorney we can go to for guidance on potential options. This just seems predatory and wrong. I took out $160k, paid for 10 years, it ballooned to $280k. Now that I’m making an ok salary they want what amounts to more than half of what i actually bring home per month.