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IBR qualifications

Started by ALP20, April 15, 2020, 06:48:10 am

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ALP20

Hi again!  I already got the answer from this forum that the standard repayment cap would apply for me even if my husband and I choose to file taxes jointly again.  Thank you!  My concern is that in my recertification letter it states that if I "no longer qualify" for a partial hardship/IBR my interest will be capitalized.  I thought that if I am on IBR I cannot be kicked off if my income no longer qualifies (it would not qualify if I file jointly).  Would it just be increased to the standard payment amount but still remain on IBR?  I'm nervous as I've heard others be kicked off when they shouldn't have.  I am close to PSLF and don't want to mess it up now but filing jointly might make more sense...

TheCollegeInvestor

If your income exceeds what you'd pay on the standard 10 year, yes, you switch plans. But for PSLF, both the standard 10 year plan and RePAYE (the other good option) count for PSLF. It doesn't reset your payment clock.

You have to do the math on joint or separate returns.