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IBR payment cap

Started by ALP20, January 24, 2020, 09:24:17 am

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ALP20

I have a question about the IBR payment cap.  I made the mistake a couple years ago of filing taxes jointly with my husband.  I was on ICR at the time.  They switched me to Repaye and wanted triple what I was used to paying and way more than even the standard payment would be. I couldn't afford it and ended up taking a forbearance.  I am a few years away from PSLF (hopefully).  We then filed separately and I got back on IBR.  My question is about the payment cap.  Since I am now on IBR, if we filed taxes jointly again would my payment be capped at what the standard payment would be like it says?  Or would the cap not apply to joint filers?  Since my salary increases a little every year I will eventually reach the point of the standard payment cap myself and don't want to unnecessarily take the tax penalty that is filing separately.  I'm planning on asking fed loan as well but I don't always feel I get the best answers.  Thank you!!!

TheCollegeInvestor

Yes, the cap applies regardless of filing status. Note: the 10-year standard plan also counts for PSLF.