In the next 10 years, I plan on getting married and having kids. How does that affect PSLF?

I have read about a marriage penalty when you choose IBR. Has this been corrected? Will I have to file my taxes as married filing separately?

Also, what about taking time off from work and student loan payments to take care of a baby?

Thanks for the help, Heather! You’re the best!

If you file your taxes jointly with your spouse, your lender will factor in both spouse’s total federal student loan debt, as well as your joint Adjusted Gross Income, to calculate your eligibility for IBR and your monthly payments.  IF you file your taxes separately from your spouse, you can have your IBR based on your AGI alone as reported on your federal tax return.

You’re likely to pay more in tax when you file separately.  You lose access to certain credits and deductions, like the Earned Income Tax Credit, and the student loans interest deduction.

Don’t assume that you are better off one way or the other.  The only way to know is to do the math.

The baby will increase your family size, which is part of the IBR calculation, and can start to count in the year in which the child will be born.

You can take leave up to the amount allowed by the Family and Medical Leave Act (12 weeks for most) without harming your full-time status for PSLF.  If you take off more time, that’s fine, but whatever payments you make towards your loans while you’re not in full-time qualifying public service employment won’t count toward the 120 required to earn forgiveness.  You can go back to work and start making payments toward forgiveness where you left off.

Happy Family!