Currently on SAVE and need to change to a new plan. I haven’t received the government email yet but my CPA suggests changing before I file my 2025 taxes so that I can qualify with my 2024 AGI (slightly lower than 2025)
My situation:
•505,000 balance (med school)
•Loans are not consolidated
•First loan taken out before July 2014.
•Current AGI around $260k, but my take home (after taxes) is closer to $80k since much of that number is tied in with my S corp business.
I was placed into forebearance shortly after I was moved to SAVE so have made little to no movement on my balance.
Other factors:
$3200 monthly mortgage, plus all other expenses just to live.
If I switch to PAYE, my estimated monthly payments are hovering around $2k monthly.
I simply cannot afford that right now.
Here’s my question-
When applying to switch, I had the option to “stay in forebearance.” I understand that interest would still accrue if I’m in forebearance but that I would not be required to make monthly payments.
Given that I have no way of affording these $2k monthly payments until I get figure out how to increase my cash flow, is it remaining in forebearance really still an option??
This entire situation is an absolute mess😭
Posted by Hulu90