Hey everyone,
Like most of you, student loans and the back and forth on SAVE has been mad confusing. With DOED sending an email yesterday informing us about the 90 days we have to change plans after we hear from our servicer, I’m now looking into what the best plan of action. I currently work for a local government and would like to have my loans forgiven through PSLF. I have 60k in loans and only make 67k. I was originally doing this before the lawsuit, and once I was put in forbearance I stopped paying and just started saving money on the side for future payments. I only managed to get 8 PSLF approved payments before that (graduated in 2023 with a masters).
Now with forbearance coming to a close, I’m confused on what the best course of action is to do. Should I attempt to enroll in an IBR or PAYE now before the 90 days, or should I wait and then by July 1st enroll in RAP?
Thank you for anyones help.
Confused on what to do for PSLF as someone on SAVE?
byu/surrealskater inStudentLoans
Posted by surrealskater
3 Comments
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I also am enrolled in PSLF and only have a few payments left, and I’m on SAVE. Now I’m not sure what to do.
You should calculate what your payments will be on each plan and decide which one you want to be on. If you’d rather wait a few months before starting payments again (knowing that your forgiveness timeline will therefore be pushed out a few months), then you can wait to switch until you’re within the 90 days after July. If you’d rather start paying again and getting qualifying payment credit now, switch now.
Plan on doing PSLF buy back in the future.
Your expected income trajectory (and house hold size) is a relevant consideration here.
PAYE and IBR have payment caps. Payment caps are set to the amount one would owe on the standard 10 year repayment plan. RAP does not have a payment cap.
Leaving IBR is an interest capitalizing event.
Interest accrual (and capitalization) matters less for someone doing PSLF since any remaining balance is forgiven tax free.