I am preparing for loan repayment upon graduation. All of my loans are federal. My understanding is that a maximum of 10% of my income will be devoted to student loans, which I am okay with. I just want to make sure this is the maximum that can be taken.
People who have $100k in *Federal* student loans, including Grad PLUS- do your monthly payments ever exceed 10% of your income?
byu/eurydiceruesalome inStudentLoans
Posted by eurydiceruesalome
4 Comments
When did you take our your first loan?
This is not true. You must be enrolled in an income-based repayment plan for your income to matter at all. The default plan is standard repayment which will be your total loan amount divided by 120.
If you qualify for and enroll in an IDR (and learn what options are available to you based on your timeline and the July 1 deadline), then your payments will be calculated based on your AGI or adjusted gross income, and range from 10-20% of your discretionary or AGI depending on the plan.
Your payment amount will depend on which payment plan you choose. IDR plans use a percentage of discretionary income or AGI. The Standard/graduated/extended plans are designed to pay off your balance over time.
Are you done taking out loans?
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