Some interesting information re: Repaye

[FrugalPhysician]

Great info. I have done an almost exact replica of this post. (Aquired about $1600 in interest, payed it off in Nov 15.). I too received the exact same subsidy both that month and the next month, it seems their formula is calculated once and just applies automatically once a month.

 

Being a new year now, I have a question regarding RePAYE I was hoping to get some clarification on. When is it necessary to send new financial information to update my subsidy? I am an intern, so I have made 5x $0 payments for 2017. Now that it is 2018 do I need to resubmit the paperwork or can I wait until June rolls around again and submit last years AGI (~25k). In other words, can I ride this free subsidy a few more months or should I start looking into submitting new paperwork to recalculate my payments. I use Great Lakes and have heard nothing from them yet.

[WWillkie]

Sorry to bump an old thread. I have a quick related question regarding the student loan interest deduction. Does the REPAYE subsidy count toward your $2500 max deduction (e.g., is it treated like a "payment")? Or will my 1098-E only reflect additional payments toward the interest that I have made on top of the subsidy?

[DMFA]

WWillkie wrote:

Sorry to bump an old thread. I have a quick related question regarding the student loan interest deduction. Does the REPAYE subsidy count toward your $2500 max deduction (e.g., is it treated like a “payment”)? Or will my 1098-E only reflect additional payments toward the interest that I have made on top of the subsidy?

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It should only cover actual money that you actually paid to your actual interest.

The government isn't going to give your a further break on the break they already gave you.  What are you, a CRNA? :lol: