Hi All,
I've been on PAYE for about 9 years (no longer going for pslf at the moment). I was planning to do private refinance since the new income plans are no longer feasible. However, to be certain the loan estimator is accurate (it has not been accurate for my annual recertification on PAYE), I was thinking of doing one last ditch effort before refinance and submitting an IBR application to determine the payments for the remainder of the 16 years to see if it is less out of pocket.
Does this make any sense at all? Thanks in advance
Should I switch from PAYE to Old IBR now?
byu/crankyporcupine inStudentLoans
Posted by crankyporcupine
1 Comment
The simulator is buggy. If you allow access to your tax data the IDR application would give you an estimate when you select a plan. But Old IBR would be a higher payment compared to PAYE (15% discretionary income vs 10% discretionary income).
Also your payment would only be good for 12 months at a time. You’d have to recertify every year. So your payment would change if your income and/or family size changes.
PAYE is also going away by July 2028. Only IBR and RAP will remain for income based options by then.