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To PSLF or Not to PSLF

Started by Serialmahogany, October 05, 2019, 05:27:31 pm

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Serialmahogany

Looking for some help calculating the best case scenario. I have approx. 83,000 (43k sub / $39 unsub / 1k unpaid interest) in student loans. They are at 6.25%, with a $425 payment changing to $777 in November. 10 qualified payments on each with PSLF IBR at FedLoan verified with the certification form working for DOD.
I'm trying to figure out how much I'll end up paying when the 120 payments are done (10/8/2028)... None of the calculators online let you enter payments already made in PSLF to see where you end up at. Trying to see if in April when Im CC debt free which I should focus on with the best bang for my back...My Home currently @114k or the student loan. I will also have a kid in college in 202, possibly picking back up to complete a PHD in the same timeframe and looking to save money to purchase another property to start passive income in real estate (after one is paid off).
Any help appreciated.

TheCollegeInvestor

None of the calculators can tell you because your payments will change every year as you certify your income. They could go up (or down), but usually up.

The question to PSLF or not - always go for PSLF if you qualify. If your circumstances change, pay off the loans. But until they change, stay on a qualifying repayment plan and certify your employment.

Serialmahogany

Ok thank you so much!!! I will stick with just planning on paying the IBR payment and extra onto the house and a mutual fund, in case the PSLF is discontinued for me, once the cc's are paid.
Meanwhile, one last question in regards to this plan. I am in the IBR plan, I amek about $97k and prob will not make more than $105k in the next 9 years due to the climate at my agency. So, is it my best bet to switch to PAYE if possible? I went to student loans.gov and it is possible it says. Is there a cost I am not seeing? I have read the site and just not sure if there is something I am not seeing. I do plan to stay the next 9 years with the government to obtain forgiveness.

TheCollegeInvestor

You have to do the math - there are no "hidden costs" other than the accrued interest. But if you get PSLF, that doesn't matter.

Note: PSLF won't be discontinued for you. It's written into your loan docs. If they do change it, it will be for future borrowers.