I am graduating my residency this coming summer and I need to pick a plan and was wondering if you guys can help me out.
Currently my wife and I both have 1,000,000 in student loans each, this including dental school and residency. We have both been on PAYE since 2019 for our dental school loans and I picked PAYE at the time so we can both do Married File Separately for our taxes.
We both would make a similar income, lets say $300,000 each just for this example. Im having trouble deciding whether we should switch to the new IBR or RAP? I took some loans in 2023-2026 for my residency so I will need to pick a payment plan for that. Can you file your taxes as Married File Jointly for both new IBR and RAP? I just want to pick a plan that I don't have to change again and can hopefully just file taxes jointly because it is a pain to file separately. Any inputs? Also I noticed my loans I got from 2023-2026 are not on a payment plan, it says N/A. Do I pick the payment plan before I graduate my residency?
Need help with large student loans and which IDR plan to pick with my spouse
byu/Moistcupcakee inStudentLoans
Posted by Moistcupcakee
1 Comment
You can file jointly or separately for IBR, PAYE, and RAP.
Since you both have loans, if you file jointly your payment will be prorated based on your percentage of the debt and then your spouse’s will be prorated based on their percentage also.
You’ll have to run scenarios for all repayment options as well as filing jointly versus separately for taxes and compare. Also consider it based on if your goal is either forgiveness or aggressive payoff since you have to consider not just the payment for this year but over the life of the loans.