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pay off or stay on IBR?

Started by heatherdean, August 15, 2016, 02:04:30 pm

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heatherdean

Hi. I incurred my federal student loans in the early 1990s. I have been on IBR since it became available - circa 2008. My original loan when I got on IBR was $95,000. Today it is $160,485.07. I pay $215/month. My 83 year old mother (on a fixed income) recently received life insurance money and would like to pay off my loan. A student loan attorney said I should not pay off my loan but rather stay on IBR until 2032 and that by that, time, the gov't will no longer tax loan forgiveness. He also told me to never get married or be more than marginally employed (meaning - do not make over $65,00/year) and never show ay assets. I want to do the right thing and end the horrible cycle of depression and anxiety. Is it smarter to pay off my loan? At this point, the anxiety over owing this money is eating me alive.

TheCollegeInvestor

It sounds like you already know the answer - pay off the loan.

All other scenarios are a gamble or you are holding yourself back. Yes, they could end the taxes on forgiveness - but maybe not. They could change the statue about married filing jointly, but maybe not.

The only certainty is paying off the loans. It sounds like you'll be much happier and freer if that happens.

redtwogreen

I definitely agree. Pay off the loan. The lawyer has no way of knowing what the govt is going to do in 2032. If you could be free and clear of your loan today, why wouldn't you? If you are feeling guilty about taking the money from your mother, you could likely work out some arrangement with her. Offer to pay her back, maybe at the same loan payment that you were paying, but maybe she would be willing to let you pay back interest free :) Just a thought. It sounds like the attorney gave you some advice which is holding you back in your life. Not get married? Not try to earn more money? Sounds like bad advice. I would literally do the opposite of everything he or she said.