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> It sounds like there's an incredible amount of work that goes into calculating those plans It is a simple calculation. 15% of Discretionary Income. DI is c
by jcampbell1 13y ago
> It sounds like there's an incredible amount of work that goes into calculating those plans
It is a simple calculation. 15% of Discretionary Income. DI is calculated as AGI minus 150% of the federal poverty line. For instance, if someone is single and makes $35k per year, their monthly payment is capped at: (35-11.5×1.5)×.15/12 -> $222 per month.
What is complicated is when people say they can't make the income based repayments because of a hardship. That is when all the counting meals and extra bedrooms happens.