Student Loans

[Anonymous]

I have to start paying payments for my student loans since my deferment is over. My issue is I can't afford the payment that it is now and I am scared that if I do the based on income repayment plan that it will increase my monthly payment. My question is as long as I am paying something this counts right and will this impact my credit score extensively going about it this way? (My student loans equal to about 8 grand.)

[Anonymous]

You need to pay at least the minimum for it to impact you positively. Also a question. You said you can't make the payments that it is now, but you think if you give them your income it will increase your payments? I'm not understanding that. 

[Anonymous]

What is the minimum? The payment they are asking for a month correct?

I do apologize for not explaining my unique situation. I make below $30,000. I do believe if I filled out paperwork for the driven income payment plan that it will increase my payment. The only way I don't see it rising is if they take in consideration of everything I pay for monthly and that I am a step mom and I help raise, provide and care for my two daughters. The majority of take home goes towards them, food and bills.

[Anonymous]

If I make too much to receive help from the government.. for food stampslol I am highly doubtful that my payment would be lowered or stay the same. Numbers are facts.

They also will see I worked two places last year... And on paper it appears I had two jobs all year when in fact I worked at one place and put my two weeks and worked at another place. IRS thinks I made $75,000 annually last year. When in fact you can look at my w-4's and see what I make hourly and also see what I bring home and it's no where near $75,000. This is a problem because they ask for 2016 tax return.

[Anonymous]

I'm very confused by this.  If you made less than $30,000 last year, why would your tax return look like you made $75,000?  At the very least, you could look at extended repayment (30 years vs. 10 years).  I finished rehabbing my loans a few months ago and had to pay $315/month during rehab, but now am on REPAYE and only pay $209/month.  Even if you submit your information, you don't have to accept the IBR, but you need to make the minimum payment or else it will damage your credit.  

[scvbd99]

repayment rules are pretty cut and dry. 

see what you qualify for. i was on IBR for a few years, and the most they can take of discretionary income is 15%. i make between 50-60k/year, and my IBR payment was about $320/month. 

like the person who posted above me, i switched to PAYE which takes 10% of your discretionary income, and now my monthly payment is even less. 

https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven

you'll need to explain in a little more detail what you mean by making less than 30K but the IRS thinks you made 70K.  just FYI, you have to re-submit your income information/tax return information each and every year for the repayment plans in the link. 

[Anonymous]

Regarding your question for the 70 k this is based off of information I found based off of FAQ on irs, TurboTax and H&R block. my tax return for 2016 was much lower and thankfully I did not owe any money this year. It was because I worked at two different places. I worked a few months at once place and found better employment and began a new job at another.

Anyway because I horribly suck at explaining in detail what I mean here is the link to give insight on what I dealt with this year and helped me find out my answers.
https://ttlc.intuit.com/questions/2273878-why-did-my-refund-drop-when-i-entered-another-w-2

[Anonymous]

Regarding your question for the 70 k this is based off of information I found based off of FAQ on irs, TurboTax and H&R block. my tax return for 2016 was much lower and thankfully I did not owe any money this year. It was because I worked at two different places. I worked a few months at once place and found better employment and began a new job at another.

Anyway because I horribly suck at explaining in detail what I mean here is the link to give insight on what I dealt with this year and helped me find out my answers.
https://ttlc.intuit.com/questions/2273878-why-did-my-refund-drop-when-i-entered-another-w-2

[scvbd99]

Yeah, I still don't understand. 

You worked 2 jobs, and the W-2's show your income to be what?

And what part of it is wrong?

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@Anonymous wrote:
Regarding your question for the 70 k this is based off of information I found based off of FAQ on irs, TurboTax and H&R block. my tax return for 2016 was much lower and thankfully I did not owe any money this year. It was because I worked at two different places. I worked a few months at once place and found better employment and began a new job at another.

Anyway because I horribly suck at explaining in detail what I mean here is the link to give insight on what I dealt with this year and helped me find out my answers.
https://ttlc.intuit.com/questions/2273878-why-did-my-refund-drop-when-i-entered-another-w-2

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[Anonymous]

I'm not understanding either.  The FAQ is trying to explain how the software works.  For example, you made a total of $30,000 last year, for simplicity let's just say it was $10,000 at one job and $20,000 at the other.  The program has no idea how long you are actually at these jobs, so when you enter your information for your first W-2 saying you made $10,000, it thinks that you only made that much for the whole year, not in the three months or however long you were there and estimates your refund/payment based on the information provided thus far.  Once you put your second W-2 in, it now thinks you made $30,000 in one year, no way for it to know that it was $10k in three months at one place and $20k in nine months at another job.  I'm thinking this is where your confusion is coming in, but I could be completely wrong.  You would not have paid taxes based on $75,000, as nowhere on your taxes should it say that you made that amount of money.  If this isn't what you are thinking, then we are going to need some more explanation.  

As far as I know, unless you are trying to show some type of financial hardship, they won't go into your expenses.  Once you get into IBR it is literally just a percentage of your adjusted gross income, which is why they want your tax return.  If you are worried about them getting your info and wanting you to pay more, don't fill out everything yet, just use this calculator:

https://studentloans.gov/myDirectLoan/repaymentEstimator.action?_ga=2.156449471.503724811.1501866148...

You will need to know your AGI for this to be accurate, but can easily get your tax transcripts if you don't have them handy.