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It's not that simple – parent loans are based on the parents' income, which makes income-based repayment useless – loan servicers don't want you on income-bas

It's not that simple – parent loans are based on the parents' income, which makes income-based repayment useless – loan servicers don't want you on income-based repayment, so if you ask them about it they're not helpful whatsoever – they fuck up the paperwork CONSTANTLY, almost every year I have to apply for income based repayment 2-3 times because they lose the paperwork or make some asinine error – no one is actively educating grads about the program because there's nothing to be gained from it – if you get married your spousal income is factored into the payment, even if your spouse also has loans It's not a one time simple thing and you're done situation. It's a pain in the ass and almost no one will help you figure it out. This is an industry that thrives on the illiteracy the average American has in personal finance. I know multiple people who ruined their credit because they didn't know the unemployed get temporary loan deferments.

yequalsx 9y ago
PAYE does not take into account spousal income if you file taxes separately. Your other statements are correct. One really has to research things and it appears many do not. EDIT: The PAYE plan does not take into account spousal income if you file taxes separately. People should be aware of this.
- khuey 9y ago
  Married filing separately is a filing status of last resort. You really only want to do that if you'll save a ton of money through PAYE. Financially you'd be better off not getting married in these cases.
  - yequalsx 9y ago
    Yes it is better not to get married in such a situation. At least financially speaking. But it is still false to say spousal income is always taken into consideration.
  - showdead 9y ago
    Apparently you can file separately in order to not take spousal income into account, then file an amended return to make it joint instead without recalculating the debt relief. Seems a bit shady to me, but apparently not uncommon.
Lostidentity 9y ago
I went on deferred payments when I lost my job 2 years ago, after missing the first payment they called me and set me up on a 0 payment deferment plan. After I got my job and made my first payment they called me again and set me up on an income based repayment plan. Both times they called me, emailed me the forms, and helped me set everything up. I think they people who are defaulting are the ones trying to ignore everything and ducking calls. Parent loans leave the parent on the hook, not the student so I don't know why youre bringing that into the fold. Things aren't that complicated, you have multiple (usually 8, one for each semester) loans at different interest rates and you need to repay them. Not that hard.
- coldtea 9y ago
  >Parent loans leave the parent on the hook, not the student so I don't know why youre bringing that into the fold. Because the family arrangement might still be for the student to help repay them -- or be forced to later by changing family economics -- when he graduates.
- accountyaccount 9y ago
  The parent is on the hook if you want to completely destroy your relationship with your parent, sure.
WalterBright 9y ago
> the illiteracy the average American has in personal finance These are supposed to be college educated Americans.
- tragic 9y ago
  Is your degree in personal finance?
  - WalterBright 9y ago
    Much of a college education is "learning how to learn", not necessarily stuffing one's mind with facts. There are innumerable books on personal finance. I expect a college educated person would have no trouble picking one up and reading and understanding it. It's not quantum electrodynamics.
    - acchow 9y ago
      > Much of a college education is "learning how to learn", not necessarily stuffing one's mind with facts. I think most degrees are just rote memorization. You must be referring to comparative literature or math or philosophy or something.
      - WalterBright 9y ago
        It's about learning how to learn. I got much better at learning during college, and many have told me the same thing. If you picked a college that consisted of rote memorization, you were rooked. Due to google, rote memorization is rather pointless.
    - barrkel 9y ago
      I think college tends towards learning a lot about a little with a bunch of handholding. Autodidacts are more likely to have learned how to learn. I see this a lot with junior devs at work. People are intimidated by what they don't know and ask for help or get frustrated or despondent - approaching things with a bit of bravery and analytical method is unusual. Those people are exactly the ones you want to keep, of course.

yequalsx 9y ago

PAYE does not take into account spousal income if you file taxes separately. Your other statements are correct. One really has to research things and it appears many do not. EDIT: The PAYE plan does not take into account spousal income if you file taxes separately. People should be aware of this.

khuey 9y ago
Married filing separately is a filing status of last resort. You really only want to do that if you'll save a ton of money through PAYE. Financially you'd be better off not getting married in these cases.
- yequalsx 9y ago
  Yes it is better not to get married in such a situation. At least financially speaking. But it is still false to say spousal income is always taken into consideration.
- showdead 9y ago
  Apparently you can file separately in order to not take spousal income into account, then file an amended return to make it joint instead without recalculating the debt relief. Seems a bit shady to me, but apparently not uncommon.

Lostidentity 9y ago

I went on deferred payments when I lost my job 2 years ago, after missing the first payment they called me and set me up on a 0 payment deferment plan. After I got my job and made my first payment they called me again and set me up on an income based repayment plan. Both times they called me, emailed me the forms, and helped me set everything up. I think they people who are defaulting are the ones trying to ignore everything and ducking calls. Parent loans leave the parent on the hook, not the student so I don't know why youre bringing that into the fold. Things aren't that complicated, you have multiple (usually 8, one for each semester) loans at different interest rates and you need to repay them. Not that hard.

coldtea 9y ago
>Parent loans leave the parent on the hook, not the student so I don't know why youre bringing that into the fold. Because the family arrangement might still be for the student to help repay them -- or be forced to later by changing family economics -- when he graduates.
accountyaccount 9y ago
The parent is on the hook if you want to completely destroy your relationship with your parent, sure.

WalterBright 9y ago

> the illiteracy the average American has in personal finance These are supposed to be college educated Americans.

tragic 9y ago
Is your degree in personal finance?
- WalterBright 9y ago
  Much of a college education is "learning how to learn", not necessarily stuffing one's mind with facts. There are innumerable books on personal finance. I expect a college educated person would have no trouble picking one up and reading and understanding it. It's not quantum electrodynamics.
  - acchow 9y ago
    > Much of a college education is "learning how to learn", not necessarily stuffing one's mind with facts. I think most degrees are just rote memorization. You must be referring to comparative literature or math or philosophy or something.
    - WalterBright 9y ago
      It's about learning how to learn. I got much better at learning during college, and many have told me the same thing. If you picked a college that consisted of rote memorization, you were rooked. Due to google, rote memorization is rather pointless.
  - barrkel 9y ago
    I think college tends towards learning a lot about a little with a bunch of handholding. Autodidacts are more likely to have learned how to learn. I see this a lot with junior devs at work. People are intimidated by what they don't know and ask for help or get frustrated or despondent - approaching things with a bit of bravery and analytical method is unusual. Those people are exactly the ones you want to keep, of course.