I’m wondering if there is any reason to switch out of SAVE before I’m forced to, when I have 18 payments left (per the back door counter – can this even be trusted?) and I’m counting on forgiveness eventually. We could the extra cash now for some necessary home repairs, and my income will not change much, and could possibly go down if we switch the health insurance plan to be under me instead of my husband. As a back up, in case the counter is wrong, I could qualify for pslf in 4.5 years if they allow a buyback. It seems like I could wait to switch out of Save but I’m wondering if I’m missing something.
Should I switch out of SAVE yet with 18 payments left?
byu/Kangaroo-05 inStudentLoans
Posted by Kangaroo-05
2 Comments
You can wait if you prefer to have no payments right now. But you will be forced to switch eventually, perhaps “soon”.
You need to reach 300 qualifying payments for IBR forgiveness. You can currently use ICR or IBR (you do not qualify for PAYE).
Your 25 year IBR forgiveness would be federally taxed. PSLF would not be.
With the rate of buyback , I would probably just switch and make payments