Have there been any updates on RePaye or PAYE? I was under impression new availability would be before end of 2015…

http://www2.ed.gov/policy/highered/reg/hearulemaking/2015/index.html

The new regulations were officially released today. Here’s a press release from the education department.

http://www.ed.gov/news/press-releas…gulations-protect-students-and-help-borrowers

For me, I just crunched some numbers, and it’s a no brainier to switch to REPAYE, even with the marriage penalty. The amount I save filing separately now at 15% isn’t as much as I’ll save filing jointly at 10%, and I’ll finally get to take tax deductions and credits that I couldn’t previously when filing separately.

My only fear is that by switching plans it will somehow later allow them to put a cap on my PSLF. I am four years down the path and I would be terrified of somehow by switching plans they would be able to throw a cap on my forgiveness, although that seems unlikely.

Also, I wonder if when switching plans, you will still have to follow this provision:

• If you wish to change to a different repayment plan, you must first make one payment under the standard repayment plan OR make a reduced payment under a special forbearance after leaving IBR.

Yes Rob i wondered that as well. Are we going to be forced to make one GIANT standard payment (mine is nearly $2700) when we want to switch to REPAYE?? That is going to be rough for those like me with huge loan balances and essentially acts as a penalty/disincentive for switching to a plan that is supposed to help us better manage our loans. 

Also I wonder about the combined AGI for determining the 10% payment for married people. I understand why they want to use both incomes, but what if both my wife and I each owe $200K?? Is that 10% figure based on our combined AGI the TOTAL amount we owe for BOTH of our loans? That would make most sense, but I wonder if that is the case.

I believe there is a provision that still allows you to file separately if both spouses have federal loans

I’m just getting my act together with this new REPAYE stuff.  It appears to me that combined income reporting for married filing separately spouses IS indeed included in the new REPAYE regulations, is that correct? 

If that is the case, a situation with one large (220k+) graduate school borrower, myself, who has a high earning spouse, enough to come close to standard repayments, and is currently married filing separately should remain in IBR and reduce discretionary income as much as possible.  The 5% extra of discretionary income, tax limitations from filing separately, 5 extra years of payments, greater tax on forgiven debt (since i’m paying less and paying longer) will still be less than what would essentially be standard payments if I combined my spouses income.

Anyone else in this boat?

I am just planning to run taxes both ways to see which is better.

But I’m in a situation with a minimal spousal income, so it’s likely that I will switch and file jointly.

There is no way to separate spousal income in REPAYE, no matter how you file your taxes.  But yes, if your spouse also has loans, their loans are factored in and the calculated payment due covers both spouse’s loans.  See the discussion on the blog here: http://askheatherjarvis.com/blog/final-repaye-regs-no-big-surprise