/biz/ - Business & Finance

>>56115636
as long as you make the SAVE minimum payment (it can be $0/month if you're a poorfag) they will subsidize any and all unpaid interest, meaning the unpaid interest balance will never grow.

>>56115647
what if i become a pharmacist next year and i make $130 k a year

>>56115647
So I should just stay a poorfag my whole life?

>>56115654
doesn't change anything. if your payment doesn't cover interest, they subsidize the interest in full. if your payment does cover interest then it obviously covers the interest and takes a chunk out of principal. in either case, whether you can't afford to pay interest or you can afford to pay the interest, as long as you make your monthly SAVE payment your will never see interest accrue.

>>56115683
that's a viable strategy. just know that you have to pay tax on the "amount forgiven" as it's treated like income.

e.g.
>make $30k/year as a poorfag
>pay essentially nothing on student loans
>$40k student loan debt gets forgiven 20 years from now
>tax bill for that particular year will be on ($30k/year poorfag salary + $40k student loan forgiveness) = $70k gross income

>>56115701
Cool. I will vote democrat forver now

>>56115701
So if I do start making money in the coming years, its still a good investment? They say that I will end up paying more over 20 years. So if I do get a job next year, that means that I report that on my SAVE IDR right? Then I receive a new estimated monthly payment (aside from $0). And the plan continues? Can I withdraw from the plan if I Want to juts pay it all? Or a 10 year plan?

>>56115722
i haven't looked at how SAVE treats voluntary withdraw, but i know for REPAYE they will kike you extra hard by capitalizing unpaid interest. we've established that SAVE subsidizes unpaid interest it wouldn't surprise me if they tracked and capitalized it if you withdraw. if you want to pay it off early, just make extra payments.

and yeah, you are forced to re-certify your income every year. it's based on tax filings, although you can do off-period re-certifications with paystubs and such if you take a pay cut or lose your job, for instance.

>So if I do start making money in the coming years, its still a good investment
you would have to sit down and run the numbers and decide for yourself. i make $100k and have $150k of student loans. i'm coming out ahead with SAVE because my total payments over 20-25 years and tax on loan forgiveness is still less than what i would be paying on a conventional 10 year payment schedule (not that i could afford the payments on a 10 year schedule) -- and that's not even taking into consideration the time value of money, which is significant.

>>56115764
i dont have a business degree! i dont know how to do any of that stuff!
so if i apply for SAVE and I do start making money next year. Will the amounts I would otherwise owe be debited at a time? Or is any forgiveness amount just paid at the end of the 20 years?

>>56115794
sry this doesnt make sense. Lets say my next payment is scheduled for 450$. I apply to SAVE. It becomes $0 before the first repayment in October. I then become a pharmacist in June 2024. I report this on my AIDvantage. The repayment is now back up to 400$ per month. Will the months I payed $0 have been debited $400 for each month ? Or it doesnt work that way?

>>56115794
>Will the amounts I would otherwise owe be debited at a time? Or is any forgiveness amount just paid at the end of the 20 years?

how much money do you expect to make before taxes and how much $ student loans do you have for a) undergraduate loans and b) graduate loans?

>>56115716
Youre a walking billboard for why democracy is retarded

>>56115815
i just have $40,269 (in the OP picture) in graduate loans.
As a pharmacist I can probably have a takehome of 120K per year.

>>56115701
>you have to pay tax on the "amount forgiven" as it's treated like income.
I discharged 400K this year tax free, lol

>>56115820
don’t care getting muy gibs

>>56115823
>Will the months I payed $0 have been debited $400 for each month ?
i don't understand what you're asking.

>takehome of 120K per year.
it's based on pre-tax (gross) income. so that's like $160k before taxes? your payment will be like $1k/month.

$160k gross income
less $33k (225% of the federal poverty level for a single filer with no dependents)
multiplied by 10% (your repayment rate for graduate loans under the SAVE program)

this equals roughly $12,700 per year / 12 months = $1050/month

i have no idea what your average interest rate on your loan is, but if it's 8% or so, you'll have paid off the loans in <10 years. so there's not much of a benefit of you being on SAVE -- although you should remain on SAVE, because it's not hurting you either.

>>56115831
based and PSLF pilled.

>>56115865
>Will the months I payed $0 have been debited $400 for each month ?
>i don't understand what you're asking.
hes asking if he drops out of the program if all the months he paid $0 will count as $400 on the loan, since that was his last payment. And the answer is obviously not

>>56115865
1050$ a month? WTF! Thats more than my current normal repayment plan of 450$ a month.

>>56115636
I don't understand either

but I will take advantage of it kek.

>>56115701
>20 years from now
>im-fucking-plying kikes won't just come up with another waiver scam to buy lifelong votes

>>56115915
hmm yeah i take that back, in your case it might be worth it stay on the standard payment plan since you're be making a lot of money and your loans are jack shit.

Also top kek they are making college degrees like a 40 year mortgage

>>56115941
but if u make above a certain amount you gonna get screwed it seems

>>56115683
You only have to be a poorfag every other year if you strategically time when you recertify the payment plan and when you file taxes.

>>56115636
Sounds like a round about way to tax poor people.

>>56116454
explain before i opt into this deal

>>56115967
looks like it very crudely scaled by means to pay and also features a sweetener of 'forgiveness'. In australia you only start to pay once you reach a certain income threshold ($51,550) and then there is a scale of % to pay from 1-10% based on your income.
>https://www.studyassist.gov.au/paying-back-your-loan/loan-repayment

>>56116666
so is it better to not opt in? since i might be expecting to make lots of moeny next year? Or should I use it as a grace period. Then withdraw from the program the following tax year.

>>56116666
also, check my digits

>>56116759
not sure how it works. not sure if you can opt out or whether you're stuck at whichever rate you choose until the 2043 debt end date. the thing is, when there is a 'sweetener' involved there are always terms and condition, always something untoward going on because every cunt know nothing if free and anything that is too good to be true is not true.

>>56116759
>>56116787
could be that forgiveness amount is over the course of the entire repayment scheme and not an instant deduction that is part of signing up. i am really sorry anon, because I know you cannot be fucked at all, but you're going to have to read into this shit anon before you sign up to anything.

>>56116808
wheres the terms and conditions? The website isnt specific enough on studentaid.gov

Oh yes