Is discretionary income for the REPAYE Plan calculated the same as PAYE or IBR?
May 3, 2014
The REPAYE calculation is more similar to PAYE than IBR because the payments are 10% of your discretionary income vs. 15%.
But as far as the discretionary income portion of the calculation, IBR and PAYE are calculated exactly the same way: https://studentloansherpa.com/discretionary-income-calculation/
This calculation for REPAYE is slightly different in the case of married people. With IBR and PAYE you can file taxes separately to avoid having to include spousal income when determining income. With REPAYE this option does not exist.
Thanks Michael, I really appreciate what you are doing! Keep up the good work as I’m sure there are thousands of people out there, heavily burdened with student loan debt, that rely on you to try to make sense out of the available options to repay these onerous burdens.
Happy New Year!
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