$200k student loans, mostly mine. $245k AGI. I make $180k and my spouse makes $65k. Average interest rate is about 6.5%.
Right now I’m paying $1,230 per month (Old IBR) and my spouse pays $102 (PAYE). I think my spouse hasn’t re-certified m in a while and I recently re-certified to get off of SAVE forbearance and onto old IBR.
We file married filing jointly and filed extensions last year and this year. Considering filing separately but not sure how to account for tax credits and two rental property. We have two young kids.
Ages 40 and 36. I’ve been paying my IDR payments since 2016.
Questions:
-does it make sense to be on old IBR or RAP? I’m ineligible for new IBR.
-Considering MFS, but with kids and two rental properties, I’m not sure how to account for tax credits, depreciation etc. and I’ve called a couple CPAs and they don’t seem to know much about MFS for student loan purposes.
What do you guys think?
Old IBR or RAP? MFJ or MFS?
byu/excel_help1122 inStudentLoans
Posted by excel_help1122
2 Comments
Are you working towards PSLF? If not, why aren’t you on a standard repayment plan with such a strong income?
No, not PSLF. Income has only been like that for the last couple years. Did student loan planner in 2018 and again two years ago and the recommendation was to go for forgiveness.
How would I even calculate the standard repayment payment – what would the term be? 20 years, 30? Do I just throw away forgiveness credit?
I know it sounds crazy to say, but cash flow is not super high. MCOL area and we pay 2k for daycare and $2500 for the mortgage. That plus student loan, insurance, gas etc. also trying to get to 6 months of expenses in cash. $12k income monthly with quarterly bonuses. We try to budget only using the regular income.
I drive a 2013 Honda, spouse has an explorer. We never eat out during the week. No babysitters. We pick up food. No personal services. No new clothes. Feels like we’re broke but recognize our income is high.