My dad took out over 230k parent plus loans to put me and my two siblings through college.

    When the three of us were all graduated, he consolidated each loan that was tied to each child/student. Then I found out out about double consolidated, and I consolidated all those consolidation loans together. I signed my dad up for SAVE. At the time his salary was $38,000, so he paid practically 0 on SAVE. (he has a rental unit but at the time of the application it was vacant)

    During the whole One Big Beautiful Bill changes, I switched my dad to ICR. My dad lost his job and after exhausting his severance and unemployment benefits, I recertified his income as just rental income. (1900 a month.) His ICR payment was $0.

    It's almost time for my dad's IDR recertification. My dad makes ~65k this year. ( a little over 40k from his new job, and 1900 a month from rental income.) Because of the language of the One Big Beautiful BIll, I understand he's eligible to move into IBR. On old-IBR (He took his first parent plus loan out in 2013) his monthly payment is 400 a month for the year. But on PAYE, which studentaid.com has red letters above and says it ends in 2028, will be 271 a month. Because of the language from the OBBB that spoke so heavily about parent plus loans must be paid on ICR before reapplying to switch to IBR, I don't know if it's risky or not to sign up for PAYE instead this year. I know for most borrowers the difference between PAYE and IBR is nonexistent, but since my dad is a pre-2014 borrower, it matters for him.

    Other info, potentially relevant. :

    My dad files separately from my mom.

    My dad is 64. He has Type 1 Diabetes. He's doing very well for his health but his T1D is always on our minds. Because of this, the ~20+ years of tax bomb forgiveness, health not considered, isn't something he necessarily cares about.

    My oldest brother is a dentist. He makes 180k. He said 400k in dental loans.

    My younger sister went to a very prestigious undergrad. She did her degree in journalism. She's still looking for work.

    I got a cybersecurity degree and an MBA. I make 120,0000 and have $4,000 combined in undergrad and grad loans from my MBA (I did my MBA while living with my brother and his wife since they lived in the same city as the program.) Because I'm the one with the most stable salary/personal debt ratio (though my brother will probably make way more than me in the next year or so) I am the one who will be doing all the payments for this coming IDR payments.

    My dad plans to retire at 66. His retirement assets include:

    -Social Security

    -~30k in his 401k

    -His rental property. (which he plans to either sell and use that to pay down his home mortgage, or use the continued monthly rental income as supplemental income.

    So eventually I'll need to run these calculations when his retirement comes as far as how much he'd pay per month. If he does sell it, his AGI will skyrocket and not even my brother and I combined will probably be able to handle the monthly IDR payment. So at that point I'd have to time his recertification.

    Parent Plus loan borrower (double consolidated)… should I switch to PAYE this year? (Pre-2014 borrower)
    byu/thenolancut inStudentLoans



    Posted by thenolancut

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