Author Topic: 10 Year Public Service on Student Loans and AGI***  (Read 503 times)

ejmyrow

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10 Year Public Service on Student Loans and AGI***
« on: January 20, 2018, 01:26:52 AM »
Aloha!
A hack to share:
If you work for a non-profit, state, or federal organization full-time, you are eligible for 10 year public service loan forgiveness.
This is helpful if you have large loans and/or if you have low-ish income.

After 120 payments WHILE ON INCOME-BASED PLAN, they forgive the remainder of your debt.

REPAYE is the cheapest plan if you're single. (If you marry perhaps a different plan is better. It depends.)

Make sure to get your employment certified every year so each monthly payment counts.

I'm on the 10 Year PSLF plan and learned a new hack:
My income actually went up, but I contributed significantly more money to my retirement accounts (any pre-tax account could count, including HSA accounts).
My paystub shows my monthly adjusted gross income which is nice (AGI). As long as you have proof of pre-tax contributions, it should work.
I submitted a copy of my paystub and applied for an "immediate recalculation" of my income, based on a "change in AGI."
My monthly loan payment went from $200 monthly to $141 monthly.
(This is good b/c on the 10 year plan, whatever remains at the end is forgiven).
It works! (My fiance's idea - got to give the credit.)