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Pay off HUGE debt with growing interest

Total Posts: 1

Joined 2016-11-30

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Thank you!

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Total Posts: 131

Joined 2015-01-08

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Income based payments are based only on the amount of income you have. So, your payments won’t be different if you have $50,000 in loans or $150,000 in loans. The only thing your loan amount affects is whether or not you qualify for an income based plan (if your loan amount is small and you make too much money, you won’t qualify.)

The interest will only come to bite you in the end if you have to claim it as taxes after the 20-25 year forgiveness periods.
I am currently not paying more than the income based payment because I am counting on PSLF. If I thought I’d switch to a non-pslf eligible job, i might consider paying more, and I purposefully left some loans out of the consolidation because they were already direct loans and had high interest rates (which means if I ever did have to repay them, I could target my payments towards those loans first and pay less interest in the end). But in the meantime, I think I’ll try to stay in the program (unless a job comes along that offers a salary that would make it possible to pay off in 10 years)