[quote=scaredyclassic]but here’s a contrarian plan.
JUST BORROW BOATLOADS OF MONEY.
in fact, try to maximize debt. assuming you and your family dont have much in the way of assets, it might not be irrational. With law school or med school, you might very well be able to climb up t the 400 or 500k in debt range.
then just put it all on IBR
(income based repayment).
basically, at huge debt levels, the gov. doesnt want you to defailt. there are all sorts of plans to stop defaulting, including IBR PAYE and public service forgivenemess.
IBR is based on income, its almost like a tax…but it takes the risk of the debt away from you, because your payment is only based on what you can pay.
of course, this is a giant governmental scam that only serves to prop up absurd tuition prices.
when the debt level gets high enough its the banks problems, not yours.
the main obstacle to this plan would be in not fretting over the debt, or, in the parlance of young debtors over at http://www.jdunderground.com , to “stop giving any fucks”.
its a daring, bold strategy, no t one i personally would have the cojones to engage in…[/quote]
scaredy, you must be aware that IBR is only “palatable” for those students who borrowed more than ~$75K total AND maintains a low annual income (<$25K?) for all 10.5 years after graduation (.5 year represents forbearance time immediately after graduation).
Who is the h@ll would voluntarily work for peanuts that many years after spending a fortune on college and putting some or all of it on student loans?? It’s idiotic.
And if the individual in an IBR plan is married, they would have to file their taxes “married, filing separately” so that their spouse’s income isn’t added to theirs, rendering the IBR plan moot.
An IBR participant has to sign a release to have their annual tax returns reviewed and ALSO recertify periodically to remain on the plan.
In your case, scaredy, you were/are obviously eligible for some loan forgiveness for your 10+ years of FT public service. As it should be. You, of all public servants, have one of the hardest jobs in the world, imho.
I’m sure you’re aware that you could have made a LOT MORE $$ in private practice.
