Wait for IDR Forgiveness or Aggressively Repay Federal Student Loans?
The wait for Income-Driven Student Loan Forgiveness takes decades. In some cases waiting for debt forgiveness is the more expensive strategy.
The wait for Income-Driven Student Loan Forgiveness takes decades. In some cases waiting for debt forgiveness is the more expensive strategy.
IDR plans like PAYE, REPAYE, and IBR were designed to provide borrowers with affordable payments. For the unemployed, this often means $0 payments.
Income-driven repayment plans are usually the best option for federal borrowers, but some circumstances justify a change in strategy.
Recalculating income-driven federal student loan payments can be done at any time and the process can save borrowers a ton of money.
Qualifying for Public Service Loan Forgiveness and buying a house are two goals that both require careful planning for student loan borrowers.
IDR plans are usually the best choice for many student loan borrowers. However, there are times when opting for another plan is the best option.
Switching from IBR to REPAYE has major benefits, but some couples will need to do some math to find the best option.
The credit score impact of enrollment in IDR plans like PAYE, IBR and REPAYE is usually minimal, but it can be a huge help in certain circumstances.
PAYE and REPAYE are better options for many borrowers, but there are times when IBR offers the lowest monthly payment and the fastest path to debt freedom.