With the end of SAVE I’m trying to do what many of us are: figure out my next best financial step.
My debt-to-income ratio is high due to student loans. Sadly, I fall under the Old IBR qualifications, not new.
Income: $42,000-60,000 depending on the year (independent contractor)
Student loan Debt: $211,304
Right now, as much as I wanted to 100% pay back my loans in a quick manner (original plan under SAVE) with accruing interest and current debt/income, it isn’t likely. So, forgiveness route it most likely is unless circumstances change.
My question is: I was looking to go to PAYE for the next year or so, to save a little money prior to it being dismantled in 2028. It would also give time for me to evaluate increase in income/change of circumstances/if RAP is better for me than the old IBR. However, based on the court rulings, it is my understanding forgiveness is no longer eligible under PAYE. (The student aid website hasn’t been updated to say that, so maybe I’m wrong.)
Does that mean payments under PAYE wouldn’t count toward forgiveness when I move to IBR or RAP?
Posted by ApprehensiveKey9340
1 Comment
PAYE payments still count