I am a 22yr old student in the US currently attending a private dental school in New York City. I am taking out federal student loans for my tuition, but for the rest of my spendings (rent, food, subway passes, etc) my family has generously supported me. So at the beginning of each semester when my student loan stipend check comes in, I've been returning it back to the school -> the DOE.
Recently I've been looking at student loan payment programs and stumbled upon the REPAYE Program. If I understand it correctly, I will have to pay 10% of my income for 20-25 years, and if there is a remaining balance, it will be "forgiven". (IE: taxed as income for that year)
As it stands, by the time I get out I will have accrued 500k in debt from school, probably a little more from the accrued interest from the years I've been in school. An average dentist's salary in the US is 200k (rounded up). Therefore I would be paying (ballpark) 20k a year to my student loans. Multiply that by 20 years and you get 400k, which is less than 500k. (IE: 100k added to my income on 20th year)
So the question stands: Why am I returning the student loans I'm not using, when I'm likely not even going to pay for them? 100k added to my income in 20 years vs 150k added is not a huge difference) I'm asking because times have been getting hard and I'd really like to take on some of the responsibility.
Submitted December 22, 2017 at 02:23AM by antwonvonschnitzel http://ift.tt/2BO2cDa
