Hi Heather,

I’ve been in repayment for 2 years, under the standard repayment plan. I am eligible for PSLF and plan to be for the 10 year window. Over the last 2 years, I’ve been filing jointly with my husband, mostly because we’ve been so confused about what to do and the advantages and disadvantages of each route are so confusing. I still have $78,000 in debt. My husband’s AGI is around $152k (he has no student debt) and mine is $65k, and we see that it would be beneficial to file separately, even with the major tax hit that entails. It seems this year that it would be $4,000 more to file separately than together (no children).

I’m now evaluating IBR and PAYE (which I’ve been told by the loan officer that I’m elgible for). PAYE seems like a great option and will bring my monthly payment down from $1000+/month to about $350/month. With the PSLF, it seems that all the debt will be forgiven after the 10 years, but now I’ve been reading about the $57,000 cap and I’m confused.

I’ve also been reading about the proposed (not yet enacted) changes that would eliminate the option of filing separately, and some other restrictions who would hurt borrowers like me - including a restriction on standard payment being eligible for PSLF.

For a married borrower with moderate income who is PSLF eligible, with a high earning spouse in the private sector, what’s the best option? Should I go with PAYE? IBR and file separately? Continue to use Standard, given the risks of things changing in a new Administration? Trying to figure out the best way to maximize these benefits in teh short and long term, balanced with the tax hit associated with filing separately.

Thanks,

Stressed Borrower

I have some of these same questions. On standard repayment now, wife is at a qualifying PSLF job for almost 3 years but to shift payment plans we’d have to take the $4k tax hit to file separately and which plan do we choose? And if the rules have or or changing re. also figuring spouse income, what’s the point in PSLF for married couples? And is there any ability to apply the payments we made on standard plan retroactively to fall under the 10-year PSLF term? WE just didn’t know we had to change the repayment plan.

It all seems pretty hopeless. By the time we pay back on standard plan we’ll be well into retirement. Hope someone comes along and helps cut back on accrued interest at some point. It’s just going to be creaming older Americans in the coming years.