Discussion about this post

User's avatar
Govindan Rajeev's avatar

Very interesting article, Nick. I question the monthly repayment numbers, however. Your chart assumes that 10% of gross income goes towards student loan repayment. Recent income-based repayment plans allow for much lower loan repayment rates. I have a friend who makes a little over $30K per year and he will have to pay zero dollars on his $45K student loan.

Nerdwallet has a student loan repayment calculator - https://www.nerdwallet.com/article/loans/student-loans/discretionary-income-calculator

A single person has to hit about $33K in AGI before needing to make any payments under the new REPAYE plan. At an AGI of $50K, the maximum payment is still under 2% of AGI.

I don't know if the majority of outstanding loans qualify for these income-based repayment plans. Do you have any sense of this?

Expand full comment
1 more comment...

No posts