It's been six months since I turned in my last paper, given my last academic presentation, and graduated from my Master's program. My framed diploma (receipt) hangs next to my undergraduate diploma (receipt) in my cubicle and is beginning to collect dust.
The repayment grace period is just about over, and Uncle Sam wants his money back over the next 120 months.
I received an email from my loan provider that my statement was available with a first payment due June 5th.
To get an idea of what I would actually pay, I went to studentloans.gov, logged in with my social security number and department of education pin, and looked at the 'Tools and Calculators.' After entering my debt (63k), my wife's debt (23k), our AGI, and family size, I had a few options:
Standard Repayment - 120 payments - $720 per month - no thank you.
Graduated Repayment - 120 payments - $414 to $1,243 per month - yikes! why did I go to graduate school again?
Extended Fixed - 300 payments - $430 per month - a mortgage on my future
Extended Graduated - 300 payments - $346 to $622 - like a mortgage but worse
Pay As You Earn - 240 payments* - $144 to $485 - winner winner chicken dinner
Income Based Repayment IBR - 300 months** - $215 to $720 - best of the worst
Income Contingent Repayment - 142 months - $556 to $735 more than my mortgage
* estimated loan forgiveness $77,629
** estimated loan forgiveness $3,766
In an earlier post, I wrote about the benefits of IBR and vaguely addressed public service loan forgiveness, a program where -. To maximize loan forgiveness, I am choosing to payback as little as possible per month ($144 v. & $720) for the next ten years which is why PAYE is best for me and my family. As the months and years go on, I will reevaluate repayment options.
Let's get to the good stuff.
If you, your partner, your friends, family, basically anybody you care about since October 1, 2007 has student loans and works (or has worked) for a:
Government Organization (including a Federal, State, local or Tribal organization, agency or entity; a public child or family service agency; or a Tribal college or university)
Non-profit, tax-exempt organization (under Section 501(c)(3) of the Internal Revenue Code)
or Private, non-profit organization (that is not a labor union or a partisan political organization) that provides at least one of the following public services
- Emergency Management
- Military service,
- Public safety,
- Law enforcement,
- Public interest law services,
- Early childhood education (including licensed or regulated child care, Head Start, and State-funded pre-kindergarten),
- Public service for individuals with disabilities and the elderly,
- Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care
- Practitioner occupations and health support occupations, as such terms are defined by the Bureau of Labor Statistics),
- Public education,
- Public library services,
- School library services, or
- Other school-based services
KEEP READING!!!
You are eligible for credit towards Public Service Loan Forgiveness!
Here's what you need to do:
Fill out the first page of the Employment Certification for Public Service Loan Forgiveness (PSLF) and send it to each organization meeting the criteria you have worked for since October 1, 2007 to fill out the second page verifying your employment and have them return it to you.
Follow the remaining instructions and send it in. Hopefully you will benefit from this program like I will!
I filled mine out today and sent it to my employer to fill and return. My wife will need to fill out an IBR application to lower her payment in early June to lower her payment as my loan. To learn how to streamline IBR through @SallieMae, read my earlier post.
Have an IBR, ICR, PAYE, PSLF story or question? Please comment and let's figure out how to save money and live our life in loan repayment! Remember to share the post and spread the word!
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