It seems reasonable to me that she pay the tax on her loans. She got a great deal.
It seems reasonable to me that she pay the tax on her loans. She got a great deal.
Sure they did. However, they have much less earning potential then the doctor does but both chose to take out the loans. That is why we paid cash as we went. My DH worked a lot of overtime to make that happen.
I would love to start a company or business when I am done. I am not sure that I would have the option of going into hiring earning public sector actually. By the time I am done my career experience will have me set in this career. I am more than willing to take the risk of starting a company as long as I have a reasonable business and back up plan. One idea is to start an after school programming company with my experience, that gives me a chance to put my beliefs in action by paying a fair wage and supporting staff.
As far as the tax bill, I may have that situation and I am not arguing it. You still get a great deal by exchanging public service for the balance to be forgiven. I have had times I didn't plan very well and ended up on a payment plan for taxes. They got paid, I figure if I am on the liberal side then I should be okay with paying my taxes after all.
Here is just a simple article about student loan and forgiveness. Always subject to change at any time but helps to aid in planning. (the IRS website was not very helpful.) https://www.usnews.com/education/blo...-student-loans
I don't know how the private loans work, as all mine are public. So that is what I will talk about.
But if you cannot afford your monthly payment (as is very often the case) you fill out some paperwork and they put you on income-based repayment. So my $1,600 monthly payment was thereby brought down to about $300 a month.
If you lose your job they will suspend payments as long as you tell them you lost it. Or if you lose your job and get a much lower paying job you can get your payment amount adjusted even lower. You just have to do the paperwork.
So defaulting on your public student loans requires a lot of negligence.
You can even make your payments 14 days late with no penalty. And most of us get a year or two worth of delays where you can simply stop paying or not pay for a year, again, as long as you do the paperwork.
I don't think student loans are necessarily different in the sense you are saying.
But if someone buys too much house or car the items can be repossessed. An education cannot be repossessed (yet!).
Buying a Ferrari is seen as a luxury. Education is seen as an investment in your future career and such, usually. The sports car seems even more frivolous than the underwater basket weaving degree.
Iris:
I actually plan to leave my public service job literally the day I get my letter of forgiveness (if it ever happens). Someone else can jump in there for the PSLF. I have said from day one I will leave when my loans are forgiven. I will have done my tour of duty!
But much like I lack the talent and ability to be a concert pianist, I lack the ability to create some successful business.
I plan to just get some laid-back, non-serious job and live my minimalist life, preferably on a coastal state. But I am also open to going back to work for the unions (if they still exist then), if I need the money and benefits.
I think you could have looked at other options such as refinancing the debt or spreading out the payments over more years. What do people not on your gravy train do when they cannot make the payments?
You say you drive a beater and live in a small apartment. Surely you can pay more than $300 a month. Lots of people pay more than that for a car payment. You can pay more instead of jetting around the world, you just don't want to. Did you pay for your conpanion's travel expenses also?
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