Hi,
My wife and I both have large outstanding loans and are currently both paying under IBR. We are worried about the tax burden associated with forgiveness at the end of 25 years. Currently, I am not quite covering monthly interest on payments and my wife is just barely covering interest. To help alleviate the stress of the tax issue, we are starting to think about having one of us try to pay off more aggressively and go back to standard payments and have the other remain in IBR and at least pay enough to cover monthly interest. Is this is a feasible plan? How would doing so affect how we want to file taxes?
Thanks,
Ryan