The latest new student loan repayment program (REPAYE – Revised Pay As You Earn) may seem like a great deal but is it really? Borrowers need to be extremely careful and vigilant in understanding the risks and rewards of these programs and if they are truly right for your financial situation.
Income based repayment programs cost much more than the traditional 10 year plans. The essence is that the lower your payment, the higher the total cost of the loan.
The Marriage Penalty
Getting married now takes on a different twist if you have student loans. You’ve heard of this in the context of income taxes but with student loans getting married and incorporating a spouse’s income could impact your student loan repayment plan dramatically. Read Jantz’ article from the San Diego Examiner to get more details.