Hey all,
I have a quick question about PSLF and PAYE payments. Hopefully I can get some clarification, or reassurance.
As background info, I am a relatively new attending, currently 1.5 years out of residency. So last year when I applied reapplied for PAYE, I did not have them use the previous years tax return when calculating my payments, as they said that if my income had significantly changed that I should not use the previous years tax return, rather I submitted two current pay stubs for that calculation. My monthly payment was $1000.
This year, without really thinking about it, I reapplied and gave the ok to use my previous years tax return. Now that I think about it, my previous years tax return was only taking half of a year of attending salary and half a year of residency into calculation, so my income was most likely significantly lower than my 2017 tax return will be when it comes to income. Anyway, my new payment based on the 2016 tax return will only be $380. All the paperwork looks right, and they approved me and everything.
I guess my question is, is this ok? My loans are approximately $300,000 so that $400 monthly is not even a drop in the bucket. I am currently 4 years into PSLF. My concern is how much lower my monthly payment is this year from last year. Should I do something about this? Do I call FedLoan and try to update it to get a more reasonable monthly payment? Or do I simply thank whoever made that calculation and take what I get handed to me? I guess I just feel weird paying $600 less a month when essentially I am making the same I did at this time last year. Just looking for reassurance that this is fine to do, and that my payments will remain ok and consistent with PSLF. Sorry for the long winded question, and thank you to anybody who took the time to read this.
I have a quick question about PSLF and PAYE payments. Hopefully I can get some clarification, or reassurance.
As background info, I am a relatively new attending, currently 1.5 years out of residency. So last year when I applied reapplied for PAYE, I did not have them use the previous years tax return when calculating my payments, as they said that if my income had significantly changed that I should not use the previous years tax return, rather I submitted two current pay stubs for that calculation. My monthly payment was $1000.
This year, without really thinking about it, I reapplied and gave the ok to use my previous years tax return. Now that I think about it, my previous years tax return was only taking half of a year of attending salary and half a year of residency into calculation, so my income was most likely significantly lower than my 2017 tax return will be when it comes to income. Anyway, my new payment based on the 2016 tax return will only be $380. All the paperwork looks right, and they approved me and everything.
I guess my question is, is this ok? My loans are approximately $300,000 so that $400 monthly is not even a drop in the bucket. I am currently 4 years into PSLF. My concern is how much lower my monthly payment is this year from last year. Should I do something about this? Do I call FedLoan and try to update it to get a more reasonable monthly payment? Or do I simply thank whoever made that calculation and take what I get handed to me? I guess I just feel weird paying $600 less a month when essentially I am making the same I did at this time last year. Just looking for reassurance that this is fine to do, and that my payments will remain ok and consistent with PSLF. Sorry for the long winded question, and thank you to anybody who took the time to read this.
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