debt owed: IBR

Friday, August 8, 2014

IBR stands for Income Based Repayment. You submit your most recent tax return and "they" (your loan carriers) determine the appropriate monthly payment for your student loans. For me, that is $0 a month. When I held my steady customer service job, I was able to pay my monthly payment. Yes, it meant I had little left over and that only a fraction could be saved, but I paid it. Now that I have left that job, it's not feasible.

I finally got my tax return submitted, and to anyone out there who is wondering if they should apply for IBR, know this at least: it's really easy. You complete the process through studentloans.gov and they submit the documents to your loan provider. 

I'm fortunate enough to have secured a part-time job (as you know from the last life update post.) Even with this, I will need to stay on IBR or completely drain my savings, as I'll be making just enough to cover rent & cost of living. (Bills & groceries!)

A part of me feels like this is giving up. I struggle with the choir between trying to pay them off as quickly as possible (savings and quality of life be dammed) or paying just enough to not claim forbearance. I hate the idea of having this debt hanging over me to for the rest of my life, but t makes me equally panicky to think of having no savings, no safety net. I'm not sure there's a right answer or what to go about it. I will, for now, continue to push my way through. 



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This series is not a perfect view of how to deal with your student loans. It's my documentation of my own experience with it.

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