I take it from your "we" that you are married. Yes, the IBR plan has an income limit of about $50k. I take it from payments that large you'll have a high income. Keep in mind, IBR is unique in that if you are married and filing separately, it will only take into account your income. How long have you been on an Income-driven repayment plan in general? ( It might be useful to get them to send your qualifying payments count, btw. They'll say they can't do it because it's not PSLF, but they can.) This payments so far will count in your total years to forgiveness even if you switch IDR plans.
Depending on when you borrowed, this leaves you with usually PAYE or REPAYE. I don't think you qualify for both, but I could be wrong. I'm not as familiar with PAYE as I am with REPAYE. REPAYE will take into account your spouse's income but also your spouse's federal loan debt. There is also a weird payment you have to make to switch between the two plans. My REPAYE payments end up being lower than the estimator. And be aware the range is because they are taking into account significant, annual pay raises. I'll have to look up details on PAYE to see if it's the same.
The standard repayment plan is for 10 years. You will be required to make these payments. The loan will be paid off in full at the end of the ten year period. This differs from the IDR plans, which you can actually make those same higher payments for at your own choosing. Imo this makes IDR safer.
All-in-all, if there wasn't going to be anything forgiven at the end of the payment period I would make payments for the standard repayment amount or higher on an IDR plan of your choosing. If you give more details, such as loan amount, years, etc. I can give you a better answer.
Depending on when you borrowed, this leaves you with usually PAYE or REPAYE. I don't think you qualify for both, but I could be wrong. I'm not as familiar with PAYE as I am with REPAYE. REPAYE will take into account your spouse's income but also your spouse's federal loan debt. There is also a weird payment you have to make to switch between the two plans. My REPAYE payments end up being lower than the estimator. And be aware the range is because they are taking into account significant, annual pay raises. I'll have to look up details on PAYE to see if it's the same.
The standard repayment plan is for 10 years. You will be required to make these payments. The loan will be paid off in full at the end of the ten year period. This differs from the IDR plans, which you can actually make those same higher payments for at your own choosing. Imo this makes IDR safer.
All-in-all, if there wasn't going to be anything forgiven at the end of the payment period I would make payments for the standard repayment amount or higher on an IDR plan of your choosing. If you give more details, such as loan amount, years, etc. I can give you a better answer.
If you file separately, what does this lower your monthly payment to on IBR?
Btw, the range isn't really a range. The first number is what you'll likely pay now. The last night number is the amount you'll pay after your income increases at a rate the Dept of Education estimates. In addition to possible wage stagnation, it does not take into account income changes or loss.
Btw, the range isn't really a range. The first number is what you'll likely pay now. The last night number is the amount you'll pay after your income increases at a rate the Dept of Education estimates. In addition to possible wage stagnation, it does not take into account income changes or loss.
Sort of. It's last monthly payment. It doesn't mean that the payments are the same until the last payment. These same ranges are given even when the loan ends in forgiveness, btw. If a different final payment than the rest of the payments were the case, why would have a final payment more than the usual minimum payment vs just having another month of payment and a reduced payment for the last payment?
It's not really clear but it's what you will be paying through the life of the loan, with income growth taken into account (3.5%?). So let's say over the course of 5 years, the first payment will be at your starting wages. 5 years later, with annual wage growth, you'll be making much more. So your payment increases. At the end of your loan, your last monthly payment would therefore be higher than your first monthly payment. However, this estimation clearly wouldn't apply to everyone. Your actual payments will be based on your income that you submit each year (or earlier if you choose, if it gives you a lower payment). So if you experience wage stagnation, this range becomes inaccurate. Your minimum payments will remain the same throughout the loan period (and if the person was up for loan forgiveness, the actual amount forgiven will likely be far greater than the estimator). If your wages increase at a greater annual rate, your minimum payments will more dramatic a range of first and last payments and will obviously result in a more decreased repayment period than estimated.
That's why it's an estimator, not a calculator. They have to give you numbers from cookie cutter circumstances. Personally, I only use it for the upcoming year and ignore the rest. Even then my numbers are way off because I recertify by timesheet to give me the lowest payment.
This article gives a better explanation than I probably can, with a sample payment chart from the estimator:
"Your monthly payment on IBR would be $86, a difference of $297 from what you are currently paying. If your income increases over time, your payments may increase. Assuming annual income growth of 3.5%, your final monthly payment would be $320. After making payments for ~25 years, you will have paid a total of $55,272 and would receive $29,204 in forgiveness, compared to your current plan where you will pay $45,960 over the next ~10 years."
https://studentloanhero.com/calculators/student-loan-income-based-repayment-calculator/
I'm open to corrections if this information is inaccurate.
It's not really clear but it's what you will be paying through the life of the loan, with income growth taken into account (3.5%?). So let's say over the course of 5 years, the first payment will be at your starting wages. 5 years later, with annual wage growth, you'll be making much more. So your payment increases. At the end of your loan, your last monthly payment would therefore be higher than your first monthly payment. However, this estimation clearly wouldn't apply to everyone. Your actual payments will be based on your income that you submit each year (or earlier if you choose, if it gives you a lower payment). So if you experience wage stagnation, this range becomes inaccurate. Your minimum payments will remain the same throughout the loan period (and if the person was up for loan forgiveness, the actual amount forgiven will likely be far greater than the estimator). If your wages increase at a greater annual rate, your minimum payments will more dramatic a range of first and last payments and will obviously result in a more decreased repayment period than estimated.
That's why it's an estimator, not a calculator. They have to give you numbers from cookie cutter circumstances. Personally, I only use it for the upcoming year and ignore the rest. Even then my numbers are way off because I recertify by timesheet to give me the lowest payment.
This article gives a better explanation than I probably can, with a sample payment chart from the estimator:
"Your monthly payment on IBR would be $86, a difference of $297 from what you are currently paying. If your income increases over time, your payments may increase. Assuming annual income growth of 3.5%, your final monthly payment would be $320. After making payments for ~25 years, you will have paid a total of $55,272 and would receive $29,204 in forgiveness, compared to your current plan where you will pay $45,960 over the next ~10 years."
https://studentloanhero.com/calculators/student-loan-income-based-repayment-calculator/
I'm open to corrections if this information is inaccurate.