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IBR already exists in the US in the sense that your payments can be capped at a percentage of your income. Unfortunately interest keeps doing its thing so many
by matheweis 10y ago
IBR already exists in the US in the sense that your payments can be capped at a percentage of your income.
Unfortunately interest keeps doing its thing so many people will see their loan amounts increase once on IBR.
This leaves their only likely out as forgiveness by making 120 payments and working for a gov/education institution for 10 years.
- bradleyjg 10y agoThere's a second out of forgiveness after 240 payments, though last I check it is unclear exactly what the tax consequences are for that type of forgiveness (public service forgiveness does not incur a tax liability).
- rhino369 10y ago>it is unclear exactly what the tax consequences are for that type of forgiveness It's treated as taxable income unless you are insolvent, which you might be if you owe a lot of money.