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PSLF for two

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  • PSLF for two

    My wife and I are both in PSLF and we have been using the IBR and because of that we had been filing as married filing separate. Recently I was on the phone with a fedLoan servicing representative and they told me that it would be to our benefit if we filed jointly and then applied for what I believe was the rePAYE program. I have been told we will pay 10% of our joint income split between the two of us based on the amount that we owe. Has anyone else heard of this? Does anyone know if this is true? I want to believe it since it will likely save us about $1000/month, I just have a hard time trusting what they tell me because I've burned by it in the past. Sometimes it seems like if I call fedloan servicing 5 times I'll get 5 different answers. Thanks

  • #2
    They're supposed to do that, yes. I have a tough time thinking that doing IBR was ever actually the best option if you were eligible for PAYE, and that married filing separately would ever be a good option if your loans and incomes were both proportionate (though it can uncommonly be).

    Did you go to the repayment estimator on studentloans.gov while adding spouse's loans? It's actually pretty functional, surprisingly enough...

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    • #3
      The only downside, if you do REPAY is you will lose the 10yr standard repayment cap protection.  With dual physician income (that's an assumption), in the latter years of repayment that may be significant.

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      • #4
        Correct me I'm wrong but if the payment went past that 10 yr repayment cap and it made more sense financially at that time, I could go back to IBR i"d just have to wait for the processing back into it.

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        • #5




          Correct me I’m wrong but if the payment went past that 10 yr repayment cap and it made more sense financially at that time, I could go back to IBR i”d just have to wait for the processing back into it.
          Click to expand...


          You can only go back to IBR if you have a partial financial hardship, meaning your calculated payment would have to be less than the 10-yr standard amount (when it entered repayment)...so you couldn't go back in that instance unless you filed separately, which would likely be a rather bad idea.

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