I recently recertified my IDR, and was shocked that the new payment come August will be upwards of $1300 a month. Context:
- Consolidated loan amount: $150k
- I have not defaulted or missed a single payment.
- Tax info: Single, no dependents
- I was paying > $200/month since repayments began in 2023, which was based on 2019 income, which was $43k gross. Token payments I guess.
- I made approx. $60k last tax year; my net take-home pay is approx. $3400 a month.
- Rent, auto insurance, gas, utilities, phone (very basic), personal care, and internet (mandatory since I often work from home) total a bit over $1400 per month.
- This leaves $700 for everything else, including groceries, spending, vehicle maintenance, etc.
- This is Colorado, where they charge you an arm and a leg to have the audacity to live here.
With grocery prices, vehicle maintenance, gas–every damn thing else skyrocketing, this amount seems unjustified. I have no problem paying back a loan. That's what I signed up for. But this feels like purposeful gouging, yes?
And the pat advice of getting a second job? Wouldn't help because a) what jobs? b) that would raise the income reported to the IRS, which would raise my payments, and c) impact my performance at my main job, which I depend on. Seems hopeless, but the gov't can garnish wages after defaulting for so long, so what choice do any of us have than to be screwed over? There's a lot more I want to say, but it's pretty vitriolic, so I'll stop here.
A lot of people in the same boat. Viva la revolution, I guess. Any advice beyond the second job part would be appreciated. I'll reach out to student loan experts in time, but wanted to start with people in the same situation as me. Thank you for reading.
$1300 IDR Payment on $150k loans??
byu/cm_kaser inStudentLoans
Posted by cm_kaser
7 Comments
Yeah this is brutal – $1300 on $3400 take home is basically forcing you into poverty, and second job just makes payments go up more so you’re stuck in loop
The math on this makes absolutely no sense. 60k on new IBR should be like a $350 payment. Which plan are you on?
The calculation is not correct. Even if your AGI was 60k and you were on ICR, it isn’t correct.
What’s your actual AGI?
Edit or you’re misreading your letter and that’s the amount if you don’t recertify.
Your numbers dont make sense. Are you sure that is IDR? What plan specifically?
I am on old IBR, income higher than yours with a much lower pmt.
This seems too high for an AGI of 60k. https://www.studentloanplanner.com/income-based-repayment-calculator/
Old IBR has a monthly payment of about $450/month for an AGI of 60k.
RAP looks like an AGI of $60k will have a monthly payment of $250/month. https://www.mass.gov/info-details/repayment-assistance-plan-rap
New IBR would be somewhere in the middle of these monthly payment amounts.
I’ve been living like this —paying more than half of my money. I don’t regret college but I wonder how my life would be if I had purchased land, created a family or invested.
This just isn’t accurate. It’s probably a standard payment, though the math on that seems off too. Are you married filing jointly? Otherwise there’s been an error. Request a recalculation. Your payments should be around $300 (new IBR) or $450 (old IBR).