December 11, 2012

Income Based Repayment!

I just found out that I qualified for income based repayment for my enormous student loans! I have never been more excited about anything concerning my finances! My life is saved! If you don't know what income based repayment is, it's exactly what the words imply. I get to pay 15% of my income to my loans, no more and no less. And after 25 years, America will eat my debt.

Greatest windfall of all: my taxable income for this year is going to be very close to $0 after adjustments.

Now, obviously I can't rely on this plan for the next 25 years, especially if I ever plan to get rich. But with no foreseeable means of becoming rich, it's a pretty sweet deal that will allow me to save up a safety net for when I get fired again, etc.

I know it's impolite to talk about money, but I am just too excited about this new crutch. Anything to avoid paying that damn fortune I owe, haha.

2 comments:

  1. Congrats on qualifying. Paying 15% of your $0 taxable income sounds like a sweet deal for you :D Might not be so good once you start making like $50K a year though. I only had $14K of student loans after graduation so it wasn't too bad for me to pay it off within a few years of working. But I know most people aren't as fortunate so IBR seems like a pretty fair program for grads struggling with student debt.

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  2. I feel like "congrats" is the wrong word to use here, but it is good to hear that you've got one less thing to worry about!

    And given the number of personal finance bloggers online, it's probably okay to talk about money anonymously like this.

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