Student Debt

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epmccurdy357
Posts: 2
Joined: Thu Mar 02, 2017 8:22 am

Student Debt

Post by epmccurdy357 »

Hello -

I apologize if this is not the appropriate place to ask this.

My husband and I are in approximately 250k of graduate school debt. All of the loans are federal. Initially my plan was to pay the loans back ASAP and be entirely debt-free within 3 years. (We now make 160k a year; our AGI is approximately 60k between the two of us). However, the REPAYE option for public loans may be the better option to obtain financial freedom sooner since it lowers our monthly payment by approximately 80%. This would be the most lucrative option contingent on our AGI being less than 50k for the next 25 years. We also would be collecting rent money on several international properties, and I am wondering if this would inflate our AGI?

I would like to get the community's thoughts on this plan versus paying the debt back ASAP.

The Old Man
Posts: 503
Joined: Sat Jun 30, 2012 5:55 pm

Re: Student Debt

Post by The Old Man »

Why do you expect your AGI to be less than 50K for the next 25 years? Do you expect to be in a low income career?
AGI includes all income on a world-wide level, so that would include international rents.

classical_Liberal
Posts: 2283
Joined: Sun Mar 20, 2016 6:05 am

Re: Student Debt

Post by classical_Liberal »

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Last edited by classical_Liberal on Thu Feb 04, 2021 11:52 pm, edited 1 time in total.

epmccurdy357
Posts: 2
Joined: Thu Mar 02, 2017 8:22 am

Re: Student Debt

Post by epmccurdy357 »

I do not expect my AGI to be less than 50k for the next 25 years which is why I'm looking for advice... The REPAYE offers forgiveness after 25 years for graduate student loans, 20 years for undergraduate loans.

Thanks for the link to the thread. This is exactly what I was searching for.

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jennypenny
Posts: 6851
Joined: Sun Jul 03, 2011 2:20 pm

Re: Student Debt

Post by jennypenny »

It's hard to rely on a program being around for 25 years without at least being modified. Search PSLF to see recent changes to that program.

I'm not really giving advice, only mentioning that you'd be relying on the program remaining in place a long time, if I understand correctly.

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