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Awesome way to avoid student loan payments?
Cognisseur
Registered User regular
Registered User regular
I saw an article on Fark today about potential student loan forgiveness. So naturally, I went to the Department of Education website to investigate.
Here's the clever plan. There's such a thing called the Income Based Repayment Plan, under which I'm expected to pay back my debts according to my income rather than a fixed 10 year period. Ordinarily, I wouldn't consider this that great of an offer because your interest will just keep accumulating.
But.
There's also the Public Service Loan Forgiveness which states that if you work full-time in a public service job for 10 years, after 120 monthly payments (10 years) the rest of your debt is totally forgiven.
So to put that all in perspective, I used their handy little Income Based Repayment Calculator. I'm about to enter a 5 year doctoral program while living in NYC so after 5 years, with no outside support, I expect to have like $130,000 in debt or so. Once I graduate and become licensed as a psychologist, I can expect to make like $60k starting salary or around there I'm guessing. I punch those numbers into the calculator and it turns out I'm qualified for the Income Based Repayment Plan with $545 monthly payments. Multiplied by the 120 months, that comes to $65,400.
So in other words, if I understand these two plans correctly, I will only have to repay $65,000 in debt and have $65,000 completely forgiven so long as I work in the public sector? That would be beyond amazing.
Anyone have any experience with this? Or anyone know what qualifies as a public sector, aka what I'd be working in for 10 years if I wanted to do this?
Here's the clever plan. There's such a thing called the Income Based Repayment Plan, under which I'm expected to pay back my debts according to my income rather than a fixed 10 year period. Ordinarily, I wouldn't consider this that great of an offer because your interest will just keep accumulating.
But.
There's also the Public Service Loan Forgiveness which states that if you work full-time in a public service job for 10 years, after 120 monthly payments (10 years) the rest of your debt is totally forgiven.
So to put that all in perspective, I used their handy little Income Based Repayment Calculator. I'm about to enter a 5 year doctoral program while living in NYC so after 5 years, with no outside support, I expect to have like $130,000 in debt or so. Once I graduate and become licensed as a psychologist, I can expect to make like $60k starting salary or around there I'm guessing. I punch those numbers into the calculator and it turns out I'm qualified for the Income Based Repayment Plan with $545 monthly payments. Multiplied by the 120 months, that comes to $65,400.
So in other words, if I understand these two plans correctly, I will only have to repay $65,000 in debt and have $65,000 completely forgiven so long as I work in the public sector? That would be beyond amazing.
Anyone have any experience with this? Or anyone know what qualifies as a public sector, aka what I'd be working in for 10 years if I wanted to do this?
Cognisseur on
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PSN: TheScrublet
I strongly suspect that in the private sector, you could easily make an extra $65,000 over ten years.