I am currently on the income based repayment plan, and I am lucky enough to be able to make occasional extra payments. My student loans are $234,000 and I am wondering if it’s unlikely I will pay them off in the 25 year period, but my income is also very likely to go up. Right now it’s just less than 100,000.

Currently my payments are less than the interest that accrues each month at the 7% interest rate. Even with my extra payments it’s unlikely I can pay more than the monthly accumulating interest.

My initial instinct is I should pay as much and often as I reasonably can, but I am also wondering if I should just be saving the extra money and just pay the minimum for the 25 years and take the forgiveness.

At one point do I get phased out of IBR? And what are your thoughts on extra payments?

There tons of introductory information on student loans but very little advanced analysis on planning for them so I appreciate any insight you have.

I know this is a fortunate problem to have, but the planning still requires some thought.

I’m brand new here and would love this answered as well, although in the meantime I am combing through every thing I can find on the IBR. I made a lot of stupid mistakes when I was younger and am trying to dig my way out. At least I’ve read I’m not alone. I’ve seen lots of posters that are in my boat too: making monthly IBR payments that are less than even the interest, so the balance just goes up thousands of dollars every year. When the 25 years is up, I’ve read that the principle AND the interest is forgiven - but BOTH of those count as taxable income. So it seems to me you might as well just keep paying whatever amount they tell you, on time, and then what…. we just wait until we get SMACKED with that huge tax bill?? I’m a spreadsheet junkie, and my figures woefully lack projecting information, like what will next year’s payments be. But nonetheless, I projected out over the whole 25 years, increasing my monthly payment each year by $200, which never covers even the interest. I will be “forgiven” (what a deceiving term, seriously) over $100k. How can anyone POSSIBLY have an idea how that will impact them that far down the road?!? We’re trying to figure out 25 years down the road what our income level will be and what the tax laws will be?!?

I fear the future on this… IBR was seriously my only choice to keep my head above very deep water. But now I can’t see that I have ANY other solutions. I am so lost. Is there a support group? :)