IBR vs. PAYE | What To Consider Before Choosing an Income Driven Repayment Plan

IBR v. PAYE... Student loans can be scary. Deciding how to choose the right plan can be overwhelming. I hope this video makes them a little less scary, and gives you more knowledge/leaves you feeling empowered in making a repayment decision moving forward! ✩ Related Content: → Should You Refinance Federal Loans With A Private Company?    • Should I Refinance My Federal Student Loan...   😺 Check meowt on instagram:   / pelvicempowerment   Table of Contents: 1. Intro - 0:00 2. How do I qualify for IBR & PAYE - 2:59 3. What's my monthly payment - 7:00 4. Which loans are eligible - 9:50 5. Loan forgiveness - 11:32 6. Are you going to qualify for all 20-25 years - 12:49 7. When will your interest get capitalized - 14:59 8. Why would you no longer demonstrate partial financial hardship - 15:34 8a. I'm not getting married - 15:52 8b. I might get married - 18:54 9. Considering capitalized interest - 22:20 10. How to pay loans safely if you will eventually no longer demonstrate partial financial hardship - 25:19 11. Closing words - 27:37 Definitions: 1. Partial Financial Hardship - the amount that you would owe annually on the Standard 10 year repayment plan is more than 15% of your “discretionary income.” 2. Discretionary Income - the amount of your adjusted gross income that exceeds 150% of the poverty line. 3. New Borrower - you did not owe any money on any federal student loan as of Oct. 1, 2007, and received a disbursement of a Direct Loan on or after Oct. 1, 2011 4. Direct Loans - direct subsidized loans, direct unsubsidized loans, direct PLUS loans, and direct consolidation loans 5. FFEL (Federal Family Education Loans) Program Loans - federal subsidized and unsubsidized Stafford loans, federal plus loans, federal consolidation loans, and federal supplemental loans for students 6. Capitalized Interest - the addition of unpaid interest to the principal balance of your loan 7. Debt to Income Ratio - total debt divided by income; typically, the max DTI for a conventional loan is 43% ♡ This video is not sponsored » Business inquiries: contact[at]pelvicempowerment.com 🍑 Interested in supporting the channel? Thank you so much! • Buy me a coffee: https://www.buymeacoffee.com/pelvicemp • Donate: https://www.paypal.com/paypalme/pelvi... • Check out my other services & offerings: https://www.pelvicempowerment.com/